Asian Shares Decline On Fed Jitters, Mixed Chinese Data

Asian stocks declined on Friday as hotter-than-expected U.S. consumer price inflation data revived fears about further interest rate increases.

Mixed Chinese data, lingering concerns about the conflict in the Middle East and caution ahead of earnings from JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. due later in the day also weighed on markets.

Gold edged up and was on course for its best week in seven months, as the dollar and Treasury yields fell slightly after climbing overnight.

Oil prices jumped around 2 percent after the U.S. Treasury Department said that it has imposed its first set of sanctions on two companies that shipped Russian oil in violation of a multinational price cap.

Chinese markets ended notably lower after the release of mixed trade and inflation data. The benchmark Shanghai Composite Index fell 0.6 percent to 3,088.10, while Hong Kong’s Hang Seng Index plunged 2.3 percent to 17,813.45.

China’s exports and imports shrank at a slower pace for a second month in September, customs data showed earlier today.

Both exports and imports fell 6.2 percent from a year earlier, slower than August’s 8.8 percent and 7.3 percent fall, respectively.

Meanwhile, China’s consumer inflation remained flat in September, while the producer price index fell 2.5 percent from a year earlier after a 3 percent drop in August, separate data revealed.

Japanese shares closed lower on worries about another possible interest rate hike by the Federal Reserve. The Nikkei 225 Index dropped 0.6 percent to 32,315.99, snapping a three-day winning streak. The broader Topix Index settled 1.4 percent lower at 2,308.75.

Even with today’s significant weakness, the Nikkei gained 4.3 percent for the week and snapped a three-week losing run.

Pharma stocks led losses, with Sumitomo Pharma plunging 6.3 percent and Astellas Pharma losing 3.2 percent. Automakers Honda Motor, Toyota and Nissan fell 2-3 percent.

Seven & i Holdings tumbled 4.5 percent after lowering revenue guidance for the second half of the year.

Heavyweight Fast Retailing, owner of the Uniqlo brand, soared 5.8 percent after reporting a 28 percent increase in annual profit.

Seoul stocks fell sharply, with the Kospi ending 1.0 percent lower at 2,456.15 to snap a two-day winning streak on Fed rate hike worries. Samsung Electronics, POSCO Holdings and LG Energy Solutions dropped 1-2 percent.

Australian markets snapped a six-day winning streak, with financials and gold miners leading losses. The benchmark S&P ASX 200 Index slid 0.6 percent to 7,051, while the broader All Ordinaries Index closed 0.6 percent lower at 7,243.50.

Across the Tasman, New Zealand’s benchmark S&P NZX-50 Index ended down 0.2 percent at 11,265.72.

Sky Network Television shares surged 13.4 percent after the pay-TV operator said it is in early discussions with a third-party buyer over a recent non-binding indicative takeover offer.

U.S. stocks ended lower overnight and Treasury yields surged as hotter-than-expected inflation data revived Fed rate-hike worries.

Data showed annual consumer inflation rose 3.7 percent in September, slightly higher than estimates of 3.6 percent. Core CPI rose 4.1 percent year-on-year.

The Dow dropped half a percent, while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 0.6 percent.

Source: Read Full Article