Asian Markets A Sea Of Red Amid Global Sell-off

Asian stock markets are a sea of red on Friday, following the broadly negative cues from global markets overnight, amid concerns about the outlook for global economic growth after some disappointing economic data from the U.S., Europe and China that offset optimism about a near-term interest rate cut by US Fed. Asian markets ended mixed on Thursday.

Data showed that U.S. manufacturing activity unexpectedly contracted at an accelerated rate in July and first-time claims for U.S. unemployment benefits rose to their highest level in almost a year last week.

Traders now await the US Labor Department’s closely watched report on employment in the month of July.

Giving up the gains the previous two sessions, the Australian stock market is sharply lower on Friday, following the broadly negative cues from global markets overnight. The benchmark S&P/ASX 200 is falling 2 percent to well below the 8,000 mark from recent all-time highs, with weakness across most sectors led by mining, energy and financial stocks after release of weak economic data from the U.S., Europe and China.

The benchmark S&P/ASX 200 Index is losing 175.00 points or 2.16 percent to 7,939.70, after hitting a low of 7,920.00 earlier. The broader All Ordinaries Index is down 176.10 points or 2.11 percent to 8,167.70. Australian markets ended modestly higher on Thursday.

Among major miners, BHP Group and Fortescue Metals are losing more than 2 percent each, while Mineral Resources and Rio Tinto are declining almost 2 percent each.

Oil stocks are mostly lower. Origin Energy is losing more than 1 percent, Woodside Energy is declining more than 2 percent, Beach energy is slipping more than 4 percent and Santos is down almost 2 percent.

Among tech stocks, Afterpay owner Block is surging almost 8 percent and Appen is gaining more than 1 percent, while Zip is losing more than 4 percent, Xero is down almost 2 percent and WiseTech Global is declining more than 3 percent.

Among the big four banks, Commonwealth Bank and Westpac are losing almost 3 percent each, while National Australia Bank is declining more than 3 percent and ANZ Banking is down more than 2 percent.

Gold miners are mostly lower. Evolution Mining and Resolute Mining are losing more than 2 percent each, while Northern Star Resources is down more than 1 percent. Newmont is edging up 0.2 percent and Gold Road Resources is gaining more than 1 percent.

In the currency market, the Aussie dollar is trading at $0.651 on Friday.

Adding to the sharp losses in the previous session, the Japanese stock market is now trading sharply lower on Friday, following the broadly negative cues from global markets overnight. The benchmark Nikkei 225 is falling more than 4 percent to well below the 36,600 level, with weakness across all sectors led by index heavyweights, technology and financial stocks.

Traders react to the Bank of Japan’s hawkish shift in monetary policy and the release of weak economic data from the U.S., Europe and China.

The benchmark Nikkei 225 Index closed the morning session at 36,261.85, down 1,864.48 points or 4.89 percent, after hitting a low of 36,107.29 earlier. Japanese stocks closed sharply lower on Thursday.

Market heavyweight SoftBank Group is losing almost 6 percent and Uniqlo operator Fast Retailing is declining 1.5 percent. Among automakers, Honda is losing more than 2 percent and Toyota is also down more than 2 percent.

In the tech space, Advantest is declining more than 7 percent, while Tokyo Electron and Screen Holdings are sliding more than 10 percent each.

In the banking sector, Mitsubishi UFJ Financial is plunging almost 8 percent, Mizuho Financial is declining almost 7 percent and Sumitomo Mitsui Financial is sliding more than 7 percent.

Among major exporters, Mitsubishi Electric is declining almost 6 percent, Canon is losing almost 3 percent, Sony is slipping more than 5 percent and Panasonic is down almost 1 percent.

Among other major losers, Daiwa Securities is plummeting more than 16 percent, while Socionext, Ebara, Dai-ichi Life and Isetan Mitsukoshi are plunging more than 9 percent each. Mitsui & Co., AGC and Mitsui Chemicals are sliding almost 9 percent each, while Fuji Electric, Lasertec and Hitachi are sliding more than 8 percent each, while NEC is declining almost 8 percent.

Conversely, NH Foods is soaring more than 8 percent and Konami Group is surging almost 8 percent.

In economic news, the monetary base in Japan was up 1.0 percent on year in July, the Bank of Japan said on Friday exceeding expectations for a gain of 0.9 percent and accelerating from 0.6 percent in June. Banknotes in circulation were down 0.9 percent on year, including a 1.5 percent drop in coins in circulation. Current account balances rose an annual 1.5 percent, including a 3.6 percent jump in reserve balances. The adjusted monetary base was up 0.8 percent after slumping 6.5 percent a month earlier.

In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Friday.

Elsewhere in Asia, Hong Kong, South Korea and Taiwan are plunging between 1.3 and 2.5 percent each, while China, New Zealand, Singapore, Malaysia and Indonesia are lower by between 0.4 and 1.1 percent each.

On Wall Street, stocks moved sharply lower over the coursed the trading day on Thursday after extending yesterday’s rally early in the session. The major averages all showed substantial moves to the downside.

The tech-heavy Nasdaq plunged 405.25 points or 2.3 percent to 17,194.15, the S&P 500 tumbled 75.62 points or 1.4 percent to 5,446.68 and the Dow slumped 494.82 points or 1,2 percent to 40,347,97

The major European markets also moved sharply lower on the day. While the U.K.’s FTSE 100 slumped by 1.0 percent, the French CAC 40 Index and the German DAX Index dove be by 2.1 percent and 2.3 percent, respectively.

Crude oil prices settled lower on Thursday on concerns about disappointing economic data and the outlook for oil demand. West Texas Intermediate Crude oil futures for September ended down $1.60 or about 2.05 percent at $76.31 a barrel.