Investing.com - Asian stocks fell in morning trade on Wednesday after the International Monetary Fund (IMF) slashed its global economic growth forecast for 2019.
China’s Shanghai Composite and the Shenzhen Component were down 0.5% and 0.6% respectively by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index declined 0.5%.
Japan’s Nikkei 225 fell 0.7%. Data on Wednesday showed the country’s core machinery orders increased 1.8% month-on-month in February, the first monthly increase in four months but fell short of the expected 2.5% increase.
Japan Display Inc (T:6740) slid as much as 7% after the company announced in a statement that a bailout deal that worth 110 billion yen ($990 million) gets delayed. It did not give a new timeline for the deal.
Meanwhile, South Korea’s KOSPI slipped 0.2%.
Down under, Australia’s ASX 200 edged up 0.2%.
Crown Resorts Ltd (AX:CWN) slumped 8.5% as Wynn Resorts Limited (NASDAQ:WYNN) abruptly ended a $7.1 billion takeover deal talks after the offer is leaked. Crown’s shares was up as much as 20% the previous day after saying it was discussing a potential sale to Wynn.
“Following the premature disclosure of preliminary discussions Wynn resorts has terminated all discussions with Crown Resorts concerning any transaction,” Wynn said in a statement. The company’s stock also fell more than 3% following the news.
Investor sentiment took a hit on Wednesday after the IMF said it expects the global economy to grow by only 3.3% in 2019, down from its previous forecast of 3.5%.
“Higher trade policy uncertainty and concerns of escalation and retaliation would reduce business investment, disrupt supply chains, and slow productivity growth,” said the fund. “The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth.”
Risk appetite was also dampened following Tuesday’s news that the U.S. is considering imposing new tariffs on European goods including new passenger helicopters, various cheeses and wines, ski-suits and certain motorcycles.