Asia report: Markets mostly lower after red Tuesday on Wall Street
Markets in Asia were mostly lower on Wednesday, taking their cues from the red finishes on Wall Street overnight.
AUD/USD
$0.6520
22:12 25/04/24
GBP/NZD
NZD2.1030
22:11 25/04/24
Hang Seng
17,284.54
10:21 25/04/24
Nikkei 225
37,628.48
09:43 25/04/24
USD/JPY
¥155.6260
22:12 25/04/24
Japan’s Nikkei 225 was down 0.47% at 20,130.41, as the yen gained to recover some of its overnight losses against the greenback, last advancing 0.16% to JPY 112.17.
Embattled technology giant Toshiba had its annual general meeting on Wednesday, having failed to meet its promise to sign a deal selling its valuable memory chip unit to a Japanese state-backed consortium before shareholders gathered.
The company said “negotiation is still continuing”, while its shares fell 1.84% by the end of the session.
US memory firm Western Digital, alongside KKR & Co, submitted a new offer for the Toshiba division, having spent recent days claiming the company’s deal with the state-backed consortium breached existing agreements between Toshiba and its subsidiary SanDisk, who are joint venture partners in a chip manufacturing facility.
Also in Tokyo, shares in airbag manufacturer Takata went into near-freefall, losing 68.18% after the company filed for bankruptcy earlier in the week.
On the mainland, the Shanghai Composite was down 0.54% at 3,173.90, and the smaller, technology-centric Shenzhen Composite was 0.8% softer at 1,883.37.
South Korea’s Kospi finished off 0.39% at 2,382.56, while the Hang Seng Index in Hong Kong lost 0.61% to settle at 25,683.50.
After a seriously depressed Tuesday which saw some stocks fall more than 90%, some small caps in Hong Kong extended their losses, with the Hong Kong Growth Enterprise Market losing 2.29 points.
Traders did have some central bank signals to digest, with European Central Bank president Mario Draghi’s comments on Tuesday that the ECB could “adjust” its policy in the fact of “improving economic conditions” chief among them.
“The current asset buying program runs until the end of the year, so traders now think the ECB's September may include an announcement to taper,” noted ThinkMarkets senior market analyst Matt Simpson.
Sentiment was down stateside overnight as well, after Senate Majority Leader Mitch McConnell confirmed the vote on the ‘Trumpcare’ health care reforms would be delayed until after the 4 July Independence Day holiday.
The controversial piece of legislation, which could result in at least 23 million Americans losing health care coverage, was also seen by business as a litmus test for how easily the Trump administration could push through its corporate-friendly agenda.
Oil prices were slightly lower during Asian trading, with Brent crude last down 0.15% at $46.58 per barrel and West Texas Intermediate down 0.41% at $44.06.
Australia’s S&P/ASX 200 went against the regional trend, finishing 0.73% higher at 5,755.70 as its weighty financials subindex and materials sector underpinned the benchmark.
The S&P/NZX 50 in New Zealand lost 0.02% to 7,624.49, with casino operator SkyCity Entertainment leading the benchmark lower, dropping 4.2%.
It was a mixed picture for the down under dollars, with the Aussie last 0.05% stronger on the greenback at AUD 1.3180, while the Kiwi lost 0.14% to NZD 1.3775.