Dipo Olowookere
By Investors Hub
Asian stocks fell broadly on Tuesday as global growth worries persisted and investors awaited the Federal Reserve’s interest rate decision.
The Fed begins its two-day policy meeting later today and is expected to raise rates for a fourth time this year. However, the accompanying statement could be dovish amid mounting risks to global growth.
China’s Shanghai Composite Index ended down 21.32 points or 0.8 percent at 2,576.65 after Chinese President Xi Jinping offered no new specific measures for the implementation of reforms in a highly anticipated speech that marked the 40th anniversary of China’s reform. Hong Kong’s Hang Seng Index tumbled 273.73 points or 1.1 percent to 25,814.25.
Japanese shares hit a nine-month low as caution set in ahead of the Fed?s and the Bank of Japan’s monetary policy decisions due on Wednesday and Thursday, respectively.
The Nikkei 225 Index plunged 391.43 points or 1.8 percent at 21,115.45, while the broader Topix Index nosedived 2 percent to 1,562.51, the lowest level since May of 2017.
Takeda Pharmaceutical plummeted 9 percent after Moody’s Investors Service downgraded its credit rating by three notches, citing concerns about its debt level following the takeover of Shire.
SoftBank Group lost 3.3 percent ahead of the proposed $23 billion Tokyo listing of its mobile business. Canon, Toyota Motor, Panasonic and Sony declined 1-4 percent as the yen gained ground on safe haven demand.
Hitachi shed 2.6 percent after it reached a deal to acquire the power grid business of Swiss engineering group ABB.
Australian markets suffered heavy losses after major U.S indexes ended down over 2 percent overnight. The S&P/ASX 200 Index fell 68.80 points or 1.2 percent to 5,589.50 after rising 1 percent in the previous session. The broader All Ordinaries Index ended down 71.10 points or 1.2 percent at 5,661.80.
Financials led the decliners, with the big four banks losing 1-3 percent. Mining heavyweights BHP and Rio Tinto fell slightly, while gold miners St Barbara, Northern Star Resources and Evolution Mining climbed 2-3 percent after gold prices rose on dollar weakness.
Woodside Petroleum, Santos, Origin Energy and Oil Search dropped 1-3 percent as oil prices fell for a third straight session on worries about oversupply. Caltex Australia slumped 5.5 percent after the company issued softer-than-expected profit guidance.
In economic news, the minutes from the Reserve Bank of Australia’s December monetary policy meeting showed board members remain worried about tightening credit and sluggish consumption.
