Asian stocks ended mostly lower on Thursday after an abrupt mid-afternoon nosedive ended Wall Street’s impressive rally overnight.
Gold prices traded range bound in Asian trade and the dollar recovered from near five-month lows while ten-year Treasury yields hit a seven-month low as a far steeper-than-expected decline in British inflation increased speculation around a rate cut next year.
Chinese shares bounced back after hitting a near five-year low hit in the previous session. The benchmark Shanghai Composite index rose 0.57 percent to 2,918.71 while Hong Kong’s Hang Seng index finished marginally higher at 16,621.13.
Japanese markets tumbled as the yen found a footing in holiday-thinned trade. The Nikkei average fell 1.59 percent to 33,140.47 while the broader Topix index settled 1 percent lower at 2,325.98.
Uniqlo store owner Fast Retailing lost 3.9 percent. Toyota Motor slumped 4 percent as subsidiary Daihatsu Motor halted vehicle shipments globally on a widening safety inspection scandal.
Seoul stocks snapped a five-day winning streak, with the Kospi average ending down 0.55 percent at 2,600.02 despite an announcement earlier in the day on loosening rules on capital gains tax for wealthy shareholders.
LG Energy Solution, POSCO Holdings and LG Chem all fell around 2 percent. Container shipper HMM plunged 11.6 percent after climbing 20 percent in the previous session on news of its planned sale to Harim Group.
Australian stocks fell, dragged down by miners and banks. The benchmark S&P/ASX 200 dropped 0.45 percent to 7,504.10 after touching a 10-month closing high on Wednesday. The broader All Ordinaries index closed down 0.47 percent at 7,727.80.
Battery mineral producer Liontown Resources plummeted 8.3 percent as concerns mounted over legal proceedings in relation to royalties from the Kathleen Valley Lithium Project in Western Australia.
Across the Tasman, New Zealand’s benchmark S&P NZX-50 index rose 0.42 percent to 11,627.99.
U.S. stocks ended sharply lower overnight as traders took profits after recent strong gains amid signs of falling inflation and dovish Fed bets.
General Mills and FedEx both cut revenue guidance for their fiscal years, overshadowing data showing improving consumer confidence and pick up in housing activity.
The Dow shed 1.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 1.5 percent.
Business News
Asian Shares Decline After Wall Street Snaps Rally
2023-12-21 08:40:06
