Asian Shares Decline After Chinese Trade Data

Asian stocks ended Thursday’s session mostly lower as Australian trade data disappointed, and the yen firmed up on expectations for a hawkish BoJ pivot.

Chinese trade data proved to be a mixed bag, with exports edging higher for the first time in six months in November, while imports showed negative growth – suggesting a sticky weak domestic demand environment.

The dollar was muted after U.S. private payrolls increased less than expected in November.

Oil rebounded from six-month lows in Asian trading, while gold traded in a narrow trading band as investors awaited the all-important U.S. jobs report due Friday to gauge when the Federal Reserve could begin trimming interest rates.

China’s Shanghai Composite Index finished marginally lower at 2,966.21 after hitting a more than one-month low earlier as trade data for November sent mixed signals about the state of the world’s second-largest economy.

Hong Kong’s Hang Seng Index hit a 13-month low before ending 0.7 percent lower at 16,345.89.

Japanese markets tumbled on heightened expectations that the Bank of Japan might soon embark on an exit from decades of ultra-low interest rates.

The Nikkei 225 Index slumped 1.8 percent to 32,858.31 as the yen rallied to over three-month highs against the dollar on expectations the Bank of Japan will end its ultra-loose policies in 2024.

The broader Topix Index settled 1.1 percent lower at 2,359.91, with energy and chip-related stocks pacing the decliners.

Seoul stocks edged slightly lower, with the Kospi slipping 0.1 percent to 2,492.07 on concerns the U.S. economy may be losing steam.

Australian markets finished marginally lower as oil futures bounced back after suffering heavy losses in the U.S. trading session overnight.

Boss Energy lost 8 percent after completing a $205 million share placement. Invictus soared 28 percent after announcing a significant gas discovery in its Muzarabani exploration project.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index rose 0.3 percent to 11,496.61.

U.S. stocks gave up initial gains to end mostly lower overnight even as weak readings on labor costs and private sector employment added to dovish Fed bets.

The Dow slipped 0.2 percent and the S&P 500 dropped 0.4 percent to extend losses for a third straight session due to overbought conditions in the market. The tech-heavy Nasdaq Composite shed 0.6 percent.