Investing.com - Asian stock markets retreated for a second day on Wednesday, as concerns over China’s economic outlook continued to weigh on market sentiment, while shares in Japan snapped a five-day win streak as trading resumed after a one-day holiday.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.25%, Australia’s ASX/200 Index shed 0.5%, while Japan’s Nikkei 225 Index fell 0.55%.
Global equities came under heavy selling pressure on Tuesday, with losses fuelled by concerns over a deeper-than-expected slowdown in Chinese economic growth after mining giant BHP Billiton said that Chinese demand for iron ore was “flattening out."
The comments followed the recent downward revision in China's growth target and a larger-than-expected trade deficit.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
The fallout continued on Wednesday, though most regional equities were off the lows of the session by midday.
The Nikkei lost ground, as investors had their first chance to react to the China worries. The weaker Chinese demand for iron ore, which is a key component to making steel, weighed on Japanese steelmakers.
Nippon Steel and JFE Holdings saw shares drop 2.1% apiece, while Sumitomo Metal Mining and Sumitomo Metal Industries lost 2.1% and 2.3% respectively.
Exporters were weaker, amid the uncertain global growth picture. Sony shares tumbled 4.5%, Canon declined 1%, while shares in heavy machinery makers Komatsu and Fanuc, which both rely on China for the majority of their revenue, slumped 3.35% and 0.9% respectively.
On the upside, Advantest, a manufacturer of memory-chip testers, rallied 5.75% after BNP Paribas upgraded its rating on the semiconductor industry.
Elsewhere, losses for property firms dragged down shares in Hong Kong. Sun Hung Kai Property retreated 2.1%, adding to the previous day’s losses when a senior executive at the property group was arrested as part of an investigation into suspected bribery.
Elsewhere in the sector, Sino Land declined 1.4%, while mainland Chinese developers Evergrande Real Estate Group and China Vanke slumped 2.8% and 3.2% respectively.
Financials were broadly weaker ahead of key earnings later this week. Agricultural Bank of China which will post earnings on Thursday, first among the so-called "Big Four" Chinese banks, shed 0.5%. China Construction Bank shares slumped 1.15%, while Industrial and Commercial Bank of China dipped 0.6%.
Meanwhile, in Australia, raw material producers came under pressure for a second day amid concerns over a slowdown in demand from China, which is the top consumer for many commodities.
The pacific nation, which is the largest shipper of iron ore and coal, cut its forecast for minerals and energy export earnings this fiscal year by 3.2% amid expectations of lower commodity prices.
Mining giants BHP Billiton and Rio Tinto fell 1.7% and 0.4% respectively, while shares in BlueScope Steel declined 1.3%.
Shares in department store David Jones plunged 11% after reporting weak first-half earnings and warned full-year profit could slump by as much as 40%.
Looking ahead, the outlook for European stock markets was upbeat, as equities looked to rebound from the previous day’s drop.
The EURO STOXX 50 futures pointed to a gain of 0.35%, France’s CAC 40 futures indicated a rise of 0.45%, Germany's DAX futures added 0.4%, while London’s FTSE 100 futures eased up 0.1%.
Later in the day, the U.S. was to release industry data on existing home sales.
During late Asian trade, Hong Kong's Hang Seng Index dipped 0.25%, Australia’s ASX/200 Index shed 0.5%, while Japan’s Nikkei 225 Index fell 0.55%.
Global equities came under heavy selling pressure on Tuesday, with losses fuelled by concerns over a deeper-than-expected slowdown in Chinese economic growth after mining giant BHP Billiton said that Chinese demand for iron ore was “flattening out."
The comments followed the recent downward revision in China's growth target and a larger-than-expected trade deficit.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
The fallout continued on Wednesday, though most regional equities were off the lows of the session by midday.
The Nikkei lost ground, as investors had their first chance to react to the China worries. The weaker Chinese demand for iron ore, which is a key component to making steel, weighed on Japanese steelmakers.
Nippon Steel and JFE Holdings saw shares drop 2.1% apiece, while Sumitomo Metal Mining and Sumitomo Metal Industries lost 2.1% and 2.3% respectively.
Exporters were weaker, amid the uncertain global growth picture. Sony shares tumbled 4.5%, Canon declined 1%, while shares in heavy machinery makers Komatsu and Fanuc, which both rely on China for the majority of their revenue, slumped 3.35% and 0.9% respectively.
On the upside, Advantest, a manufacturer of memory-chip testers, rallied 5.75% after BNP Paribas upgraded its rating on the semiconductor industry.
Elsewhere, losses for property firms dragged down shares in Hong Kong. Sun Hung Kai Property retreated 2.1%, adding to the previous day’s losses when a senior executive at the property group was arrested as part of an investigation into suspected bribery.
Elsewhere in the sector, Sino Land declined 1.4%, while mainland Chinese developers Evergrande Real Estate Group and China Vanke slumped 2.8% and 3.2% respectively.
Financials were broadly weaker ahead of key earnings later this week. Agricultural Bank of China which will post earnings on Thursday, first among the so-called "Big Four" Chinese banks, shed 0.5%. China Construction Bank shares slumped 1.15%, while Industrial and Commercial Bank of China dipped 0.6%.
Meanwhile, in Australia, raw material producers came under pressure for a second day amid concerns over a slowdown in demand from China, which is the top consumer for many commodities.
The pacific nation, which is the largest shipper of iron ore and coal, cut its forecast for minerals and energy export earnings this fiscal year by 3.2% amid expectations of lower commodity prices.
Mining giants BHP Billiton and Rio Tinto fell 1.7% and 0.4% respectively, while shares in BlueScope Steel declined 1.3%.
Shares in department store David Jones plunged 11% after reporting weak first-half earnings and warned full-year profit could slump by as much as 40%.
Looking ahead, the outlook for European stock markets was upbeat, as equities looked to rebound from the previous day’s drop.
The EURO STOXX 50 futures pointed to a gain of 0.35%, France’s CAC 40 futures indicated a rise of 0.45%, Germany's DAX futures added 0.4%, while London’s FTSE 100 futures eased up 0.1%.
Later in the day, the U.S. was to release industry data on existing home sales.