Investing.com - Asian stock markets were broadly lower during late Asian trade on Thursday, as investors turned cautious ahead of a speech by Federal Reserve chairman Ben Bernanke at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday.
During late Asian trade, Hong Kong's Hang Seng Index fell 1.2%, Australia’s ASX/200 Index declined 0.95%, while Japan’s Nikkei 225 Index dropped 1%.
Asian equities have rallied in recent weeks amid growing hopes policymakers in the U.S., Europe and China will introduce fresh easing measures to prop up their respective economies.
But trading activity in recent sessions has been relatively subdued as uncertainty ahead of Bernanke’s speech on Friday has been dominating sentiment, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.
Data on Wednesday showed that U.S. pending home sales rose to the highest level since April 2010 in July while a separate report showed that the U.S. economy grew at a faster rate than initially expected in the second quarter.
The National Association of Realtors said its pending home sales index rose by 2.4% in July, easily surpassing expectations for a 1.0% increase.
The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Meanwhile, there are also expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
In an article published in German’s Die Zeit newspaper, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.
The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload”.
In Tokyo, the Nikkei ended at the lowest level in two weeks, as retailers came under pressure after government data showed retail sales fell 0.8% in July from a year earlier, worse than expectations for a 0.2% decline.
Shares in index heavyweight Fast Retailing slumped 1.35%, J. Front Retailing and Seven & I Holdings dropped 2% apiece.
Shares in steel and iron makers came under pressure, after iron ore prices fell to the lowest level since 2009 amid ongoing concerns over a slowdown in demand from top consumer China.
Nippon Steel lost 3.6%, Kobe Steel slumped 1.55% and JFE Holdings slumped 2.9%.
Elsewhere, shares in Hong Kong came under pressure, tracking losses in mainland China, where shares fell to a three-year low amid fading hopes for near-term easing.
Growing concern over a slowdown in corporate earnings has weighed on markets in China and Hong Kong in recent weeks.
Shares in shipping giant China Cosco Holdings tumbled 4.1% after reporting a first-half net loss which almost doubled from a year earlier to CNY4.87 billion.
Meanwhile, shares in Australia ended at a two-week low, as miners came under pressure amid concerns over the global economy and falling copper and iron ore prices.
Mining giants Rio Tinto and BHP Billiton saw shares drop 3.95% and 2.3% respectively, while iron ore producer Fortescue Metals and Sundance Resources slumped 1.65%.
Looking ahead, the outlook for European stock markets was mildly lower. The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures eased down 0.25%, while Germany's DAX futures pointed to a drop of 0.25% at the open.
Later in the day, Italy was to auction 10-year bonds, in what would be a key test of investor appetite for the country’s debt.
Meanwhile, the U.S. was to release official data on personal income as well as a weekly report on jobless claims.
During late Asian trade, Hong Kong's Hang Seng Index fell 1.2%, Australia’s ASX/200 Index declined 0.95%, while Japan’s Nikkei 225 Index dropped 1%.
Asian equities have rallied in recent weeks amid growing hopes policymakers in the U.S., Europe and China will introduce fresh easing measures to prop up their respective economies.
But trading activity in recent sessions has been relatively subdued as uncertainty ahead of Bernanke’s speech on Friday has been dominating sentiment, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.
Bernanke's speech at Jackson Hole precedes the central bank’s two-day policy meeting beginning September 12, and he has used the event in the previous two years to flag the Fed's intention for more easing.
Data on Wednesday showed that U.S. pending home sales rose to the highest level since April 2010 in July while a separate report showed that the U.S. economy grew at a faster rate than initially expected in the second quarter.
The National Association of Realtors said its pending home sales index rose by 2.4% in July, easily surpassing expectations for a 1.0% increase.
The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Meanwhile, there are also expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
In an article published in German’s Die Zeit newspaper, ECB President Mario Draghi said that the central bank needs to employ "exceptional measures" with monetary policy, while acting within its mandate.
The ECB president had been due to speak at the Jackson Hole summit on Saturday, one day after Bernanke’s speech, but he pulled out, citing his "heavy workload”.
In Tokyo, the Nikkei ended at the lowest level in two weeks, as retailers came under pressure after government data showed retail sales fell 0.8% in July from a year earlier, worse than expectations for a 0.2% decline.
Shares in index heavyweight Fast Retailing slumped 1.35%, J. Front Retailing and Seven & I Holdings dropped 2% apiece.
Shares in steel and iron makers came under pressure, after iron ore prices fell to the lowest level since 2009 amid ongoing concerns over a slowdown in demand from top consumer China.
Nippon Steel lost 3.6%, Kobe Steel slumped 1.55% and JFE Holdings slumped 2.9%.
Elsewhere, shares in Hong Kong came under pressure, tracking losses in mainland China, where shares fell to a three-year low amid fading hopes for near-term easing.
Growing concern over a slowdown in corporate earnings has weighed on markets in China and Hong Kong in recent weeks.
Shares in shipping giant China Cosco Holdings tumbled 4.1% after reporting a first-half net loss which almost doubled from a year earlier to CNY4.87 billion.
Meanwhile, shares in Australia ended at a two-week low, as miners came under pressure amid concerns over the global economy and falling copper and iron ore prices.
Mining giants Rio Tinto and BHP Billiton saw shares drop 3.95% and 2.3% respectively, while iron ore producer Fortescue Metals and Sundance Resources slumped 1.65%.
Looking ahead, the outlook for European stock markets was mildly lower. The EURO STOXX 50 futures pointed to a loss of 0.4% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures eased down 0.25%, while Germany's DAX futures pointed to a drop of 0.25% at the open.
Later in the day, Italy was to auction 10-year bonds, in what would be a key test of investor appetite for the country’s debt.
Meanwhile, the U.S. was to release official data on personal income as well as a weekly report on jobless claims.