Investing.com - Asian stock markets retreated on Monday, as appetite for riskier assets came under pressure after China posted its largest trade deficit in at least a decade, while diminished expectations for fresh monetary easing in the U.S. also weighed.
During late Asian trade, Hong Kong's Hang Seng Index eased down 0.1%, Australia’s ASX/200 Index shed 0.35%, while Japan’s Nikkei 225 Index slumped 0.4%.
Official data released over the weekend showed that China swung to a massive trade deficit of USD31.5 billion in February, the largest since 1989. The data reflected a significant drop in exports, while imports rebounded after a Lunar New Year holiday slowdown.
January-February export growth slowed to 6.9% over the same two-month period last year, barely half of December's 13.4% rate. Imports for the two months rose 7.7%.
The data, which underlined lingering fears over a global economic slowdown, hurt shares in shippers and port operators in Hong Kong.
Port operator Cosco Pacific Limited dropped 1.9%, China Merchants Holdings slumped 1.3%, while shipping firm China COSCO Holdings retreated 1.95%. Global retailer Li & Fung, which gets more than 95% of revenue from exports from China, fell 2.2%
Railway sector stocks came under heavy selling pressure after Xinhua News reported that a 300-meter section of an unopened high-speed railway collapsed in central China’s Hubei province following heavy rain.
China Railway Group shares tumbled 5.7%, China South Locomotive & Rolling Stock or, CSR, sank 4.4%, while shares in China Railway Construction plunged 7%.
Elsewhere, the Nikkei closed lower after briefly breaking above the 10,000-markl in mid-day trade. Market participants noted that hedge funds locked in profits once the index broke above the key psychological level.
The Department of Labor said Friday that the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
The strong data boosted the dollar as it diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
Shares in the financial sector came under pressure. Mitsubishi UFJ Financial Group shed 1.4%, Mizuho Financial Group declined 1,45%, while investment banks Nomura Holdings slipped 0.5%.
Looking ahead, the outlook for European stock markets was modestly downbeat. Greece announced that more than 85% of its private creditors had signed up to a debt swap deal, aimed at restructuring 53.5% of the country’s debt.
But market sentiment was tempered after the International Swaps and Derivatives Association said the debt swap constituted a “credit event” that would activate credit-default swaps, which designed to protect investors against losses on Greek sovereign debt.
The EURO STOXX 50 futures pointed to a modest drop of 0.15%, France’s CAC 40 futures slipped 0.25%, London’s FTSE 100 futures eased down 0.15%, while Germany's DAX futures pointed to a decline of 0.15% at the open.
Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.
During late Asian trade, Hong Kong's Hang Seng Index eased down 0.1%, Australia’s ASX/200 Index shed 0.35%, while Japan’s Nikkei 225 Index slumped 0.4%.
Official data released over the weekend showed that China swung to a massive trade deficit of USD31.5 billion in February, the largest since 1989. The data reflected a significant drop in exports, while imports rebounded after a Lunar New Year holiday slowdown.
January-February export growth slowed to 6.9% over the same two-month period last year, barely half of December's 13.4% rate. Imports for the two months rose 7.7%.
The data, which underlined lingering fears over a global economic slowdown, hurt shares in shippers and port operators in Hong Kong.
Port operator Cosco Pacific Limited dropped 1.9%, China Merchants Holdings slumped 1.3%, while shipping firm China COSCO Holdings retreated 1.95%. Global retailer Li & Fung, which gets more than 95% of revenue from exports from China, fell 2.2%
Railway sector stocks came under heavy selling pressure after Xinhua News reported that a 300-meter section of an unopened high-speed railway collapsed in central China’s Hubei province following heavy rain.
China Railway Group shares tumbled 5.7%, China South Locomotive & Rolling Stock or, CSR, sank 4.4%, while shares in China Railway Construction plunged 7%.
Elsewhere, the Nikkei closed lower after briefly breaking above the 10,000-markl in mid-day trade. Market participants noted that hedge funds locked in profits once the index broke above the key psychological level.
The Department of Labor said Friday that the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
The strong data boosted the dollar as it diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
Shares in the financial sector came under pressure. Mitsubishi UFJ Financial Group shed 1.4%, Mizuho Financial Group declined 1,45%, while investment banks Nomura Holdings slipped 0.5%.
Looking ahead, the outlook for European stock markets was modestly downbeat. Greece announced that more than 85% of its private creditors had signed up to a debt swap deal, aimed at restructuring 53.5% of the country’s debt.
But market sentiment was tempered after the International Swaps and Derivatives Association said the debt swap constituted a “credit event” that would activate credit-default swaps, which designed to protect investors against losses on Greek sovereign debt.
The EURO STOXX 50 futures pointed to a modest drop of 0.15%, France’s CAC 40 futures slipped 0.25%, London’s FTSE 100 futures eased down 0.15%, while Germany's DAX futures pointed to a decline of 0.15% at the open.
Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.