Asian Markets Track Wall Street Lower

Equity markets in Asia closed on an overwhelmingly negative note on Tuesday, tracking the weak closing on Wall Street on Monday amidst anxiety about how the U.S. labor market update could sway the Fed’s interest rate trajectory. China’s trade data update due on Wednesday as well as the inflation update due on Friday added to the anxiety. News of Moody’s cutting the Chinese sovereign bonds rating also dampened sentiment.

China’s Shanghai Composite Index tumbled 1.67 percent to finish trading at 2,972.30. The day’s trading ranged between 3,017.01 and 2,972.30. The Shenzhen Component Index also plunged 1.97 percent to close at 9,470.36.

The Japanese benchmark Nikkei 225 lost 455 points or 1.37 percent to end trading at 32,775.82, tracking the negative sentiment at Wall Street. The day’s trading range was between 33,089.82 and 32,726.68. The downward revision in Japan’s Services PMI readings also impacted sentiment.

Cyber Agent was the top gainer with a surge of 2.7 percent. Subaru Corp, Toppan Printing, Mitsui Engineering and Shipbuilding, all gained more than 2 percent. T&D Holdings added 1.93 percent.

Advantest Corp plunged 6.2 percent. Dainippon Screen Manufacturing followed with losses of 5.3 percent. Tokyo Electron, Yaskawa Electric Corp and NEC Corp, all slipped more than 3 percent.

The Hang Seng Index of the Hong Kong Stock Exchange shed 318 points or 1.91 percent from the previous close to finish trading at 16,327.86. The day’s trading range was between a high of 16,606.54 and a low of 16,228.52.

Korean Stock Exchange’s Kospi Index dropped 20 points or 0.82 percent to close trading at 2,494.28. The day’s trading range was between 2,492.55 and 2,509.74.

Australia’s S&P/ASX200 closed trading at 7,061.60, shedding 63 points or 0.89 percent amidst Reserve Bank of Australia’s widely expected status quo on interest rates. The day’s trading range was between 7041.10 and 7,124.70.

Evolution Mining, Coronado Global Resources, utilities business Origin Energy and healthcare equipment business Nanosonics, all rallied more than 2 percent. Collins Foods gained 1.9 percent.

Mining stocks led the decline in the backdrop of weaker commodity prices. Core Lithium extended losses with a plunge of close to 10 percent. Liontown Resources also dropped 9.2 percent. Pilbara Minerals and Capricorn Metals, both slipped more than 8 percent. IGO also extended losses with a decline of close to 7 percent.

The NZX 50 of the New Zealand Stock Exchange slipped 24 points or 0.21 percent to close trading at 11,356.99 versus the previous close of 11,367.81. Trading ranged between 11,311.78 and 11,380.88.

Vital Healthcare Property Trust rebounded, adding 2.93 percent. Food business Sanford, freight and logistics business Mainfreight and healthcare distribution business EBOS, all gained more than 1 percent. Investore Property, an REIT also added 0.99 percent.

Software business Serko slipped 4.9 percent. Synlait Milk, software business Vista Group International, healthcare business Pacific Edge all slipped more than 4 percent. Restaurant Brands New Zealand declined 3.7 percent.

Wall Street had closed on a negative note on Monday as markets reassessed the monetary policy outlook. Anxiety ahead of monthly labor market update also weighed on sentiment. Nasdaq Composite slipped 0.84 percent to close at 14,185.49 whereas the Dow Jones Industrial Average edged down 0.11 percent to finish trading at 36,204.44.