· Hong Kong shares lead declines across Asia-Pacific; Singapore stocks up 1.3
Shares traded mostly lower across Asia-Pacific markets on Wednesday as investors turned cautious, despite remarks overnight from Federal Reserve Chair Jerome Powell that attempted to ease some worries around higher interest rates and inflation.
In Australia, the benchmark ASX 200 fell 0.9% to 6,777.80, led by losses in most sectors, including a 0.45% drop in the heavily weighted financials subindex. Among the so-called Big Four banks in the country, ANZ shares were down 0.67%, Commonwealth Bank shares were down 0.61%, and Westpac fell 0.46%. National Australia Bank shares reversed earlier losses to trade up 0.2%.
Japanese markets returned to trade after being shut for a public holiday on Tuesday. The Nikkei 225 fell 1.61% to 29,671.70 while the Topix index declined 1.82% to 1,903.07.
South Korean shares also fell as the Kospi index dropped 2.45% to 2,994.98. The Kosdaq index declined by 3.23% to 906.31.
Chinese mainland shares also traded lower: The Shanghai composite dropped 1.99% to 3,564.08 while the Shenzhen component index fell 2.44% to 14,870.66.
Hong Kong’s Hang Seng Index tumbled nearly 3% in late-afternoon trade. The Hong Kong government said it will spend more than $15 billion in the coming financial year on measures to bolster its recession-struck economy.
In Singapore, the Straits Times Index bucked the general downward trend to advance 1.36% in the afternoon.
The session in Asia followed a mixed finish on Wall Street, where the Dow Jones Industrial Average reversed steep losses following Powell’s remarks.
Australian wage growth slows
Wages in Australia grew at their slowest pace on record annually, according to the Australian Bureau of Statistics. Data showed the wage price index grew 0.6% for the three months that ended in December. The annual wage growth remained at a record low of 1.4% for the second consecutive quarter.
The Reserve Bank of Australia has said that there needs to be a sustained period of labor market tightness to generate the wages growth needed to see inflation return to the central bank’s 2%-3% target range. Only then, would the central bank move to increase its cash rate.
· Stock futures slip after Tuesday’s intraday comeback
U.S. stock futures declined in early morning trade on Wednesday as investors looked to see whether a late-day swing in the market would continue.
Futures contracts for the Dow Jones Industrial Average fell roughly 51 points, or 0.16%. Those tied to the S&P 500 and the Nasdaq 100 also slipped about 0.14% and 0.3%, respectively.
· European markets inch higher as investors digest Fed outlook
European stocks were mostly higher on Wednesday morning as markets digest remarks from U.S. Federal Reserve Chair Jerome Powell on Tuesday, as he attempted to ease some worries around higher interest rates and inflation.
The pan-European Stoxx 600 inched 0.2% higher in early trade, with chemicals and travel stocks both adding 0.8% while media stocks fell 0.9%. Britain’s FTSE 100 was the only major bourse in negative territory, weighed down by a strengthening of the pound.
Europe is following cautious trade in Asia-Pacific overnight, where markets were also reading into Powell’s comments on the U.S. economic outlook.
Reference: CNBC
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