Asian stocks turned in a mixed performance on Thursday, with Chinese and Hong Kong markets tumbling on worries of a possible trade war between China and the United States in the wake of Donald Trump’s return to the White House.
Longer-dated U.S. bond yields rose alongside the dollar, while gold hit an eight-week low after some Federal Reserve officials shifted their attention back to inflation risks.
It is feared that Trump’s plan for lower taxes and higher tariffs will stoke inflation, resulting in larger U.S. deficits and reducing the Fed’s scope to ease interest rates during 2025 and beyond.
Oil prices were lower in Asian trading amid concerns about rising global output and slow demand growth.
China’s Shanghai Composite Index slumped 1.7 percent 30 3,379.84 as growth worries persisted despite the recent stimulus package.
Hong Kong’s Hang Seng Index dove 2.0 percent to 19,435.81 despite Beijing unveiling tax incentives on home and land transactions on Wednesday to shore up an ailing economy.
Tech giant Tencent edged marginally lower after its third quarter revenue missed expectations. Peer JD.com plunged 4.7 percent and Alibaba gave up 2.9 percent.
Japanese markets ended lower in choppy trading despite repeated verbal warnings by government officials about the abrupt decline of the yen, which hit a four-month low against the dollar.
The Nikkei 225 Index fell 0.5 percent to 38,535.70, while the broader Topix Index settled 0.3 percent lower at 2,701.22.
Seoul stocks fluctuated before finishing on a flat note. The Kospi finished marginally higher at 2,418.86. Shares of Samsung Electronics fell 1.4 percent to extend losses after falling to an over four-year low of under 51000 won ($36.24) Wednesday amid worries about the impact of U.S. tariffs under a new Trump administration.
Australian markets eked out modest gains after data showed the unemployment rate held steady at 4.1 percent last month but hiring gains slowed.
The benchmark S&P/ASX 200 Index rose 0.4 percent to 8,224, led by banks as RBA Governor Michele Bullock indicated rate cuts are off the table until inflation aligns with the target.
Technology stocks also advanced, with Xero surging 5.9 percent after reporting robust quarterly results. The broader All Ordinaries Index closed 0.3 percent higher at 8,479.90.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index closed up 0.2 percent at 12,692.94.
U.S. stocks fluctuated before ending mixed overnight as longer-dated Treasury yields rose amid expectations that the Fed may not reduce rates as much as previously thought.
Data showed the consumer price index rose 0.2 percent for the fourth straight month in October, matching expectations.
The annual rate of consumer price growth accelerated to 2.6 percent from 2.4 percent in September, while the core consumer price inflation rate stood at a three-month high of 3.3 percent, unchanged from September.
The tech-heavy Nasdaq Composite shed 0.3 percent, while the S&P 500 and the Dow crept marginally higher.
Business News
Asian Shares Mixed As China Concerns Persist
2024-11-14 08:40:37
