Asia Markets: Nikkei faces 6th straight decline as Asian markets pull back

Global stock markets continued to pull back on Wednesday as investors continued to assess October’s surge and as commodity prices fell further.

Weakness overnight in Europe and the U.S. “ultimately set Asia up for quite a soggy start,” said Chris Weston, chief market strategist at IG Group.

The Nikkei Stock Average NIK, -1.31%   ended morning trading down 0.9%, and nearly set an intraday low for November. That after October saw a record 16-day winning streak which helped send the Japanese benchmark up 21% in two months. It is now facing a sixth straight decline, something it hasn’t done since May 2016.

Factors behind today’s drop included a stronger yen and fresh weakness in oil prices, with crude declines of at least 1.5% Tuesday being followed by another 1% drop in Asia on a downbeat U.S. inventory reading. Japan Petroleum Exploration 1662, -4.47%   and Inpex 1605, -4.32%   both slid some 4%.

The WSJ Dollar Index was little changed in Asia, but the morning’s yen strength pushed the greenback JPYUSD, +0.251831%   down to ¥113.15 from ¥113.62 at Tokyo’s stock market close Tuesday.

The Japanese currency may have been helped by economic-growth figures which, while in line with expectations, allowed the country to notch its longest streak of quarterly gross domestic product gains to 16 years. Marcel Thieliant of Capital Economics, though, said, “The economy is running into capacity constraints, which suggests that growth will start to slow next year.”

The weakness in commodity prices continued to weigh on Australian stocks, whose market has a heavy weighting in resources. The S&P/ASX 200 XJO, -0.49%   fell 0.3% after logging its biggest decline in nearly two months on Tuesday. The energy subindex slid another 2% after a 4% skid a day earlier, the most in 18 months.

Separately, Australia’s third-quarter wages grew by a lower-than-expected 0.5% despite a big rise in the minimum wage earlier this year. The news highlighted the difficulty the central bank faces in getting inflation to return to its target band over time and likely further wait for the start of interest-rate hikes there.

Near-0.5% index declines were logged in China SHCOMP, -0.71%  , Hong Kong HSI, -0.74%   and Taiwan Y9999, -0.64%   — the latter weighed by a 2.4% drop in key Apple supply-chain firm Foxconn 2354, -1.02%  . The company, known formally as Hon Hai, posted a 39% quarterly profit drop amid challenges related to initial production of Apple’s iPhone X.

Filed in: Top News Tags: 

You might like:

numberFire: NFL: 10 stats to know from both conference championship matchups numberFire: NFL: 10 stats to know from both conference championship matchups
If Vikings win, historic home-field Super Bowl could require steepest ticket ever If Vikings win, historic home-field Super Bowl could require steepest ticket ever
Jeff Reeves's Strength in Numbers: Prepare for these 5 tech stocks to move big on earnings Jeff Reeves's Strength in Numbers: Prepare for these 5 tech stocks to move big on earnings
Why Apple’s new campus and Amazon’s HQ2 probably won’t be neighbors Why Apple’s new campus and Amazon’s HQ2 probably won’t be neighbors
Is gold on the verge of breaking out? Is gold on the verge of breaking out?
Anniversary of Women’s March carries new message: Power to the Polls Anniversary of Women’s March carries new message: Power to the Polls
Tesla’s roaring start to 2018 is costing short sellers $1 billion Tesla’s roaring start to 2018 is costing short sellers $1 billion
The Sniff Test: Apple didn’t say it was hiring 20,000 new workers, nor bringing back all of its overseas cash The Sniff Test: Apple didn’t say it was hiring 20,000 new workers, nor bringing back all of its overseas cash

Leave a Reply

Submit Comment
© 0956 Stock Investors News. All rights reserved. XHTML / CSS Valid.