Asian Markets End Mostly Lower

By Investors Hub

Asian stocks ended mostly lower on Thursday as financial markets offered a muted reaction to the passage of major U.S. tax reform, which will lower tax rates for both businesses and individual Americans.

Japanese shares moved to the downside even as the dollar held near a one-week high against the yen, supported by an increase in U.S. bond yields.

The Nikkei 225 Index dipped 25.62 points or 0.11 percent to 22,866.10, led down by banks as the Bank of Japan left its monetary policy unchanged as widely expected, underscoring its conviction that a recovery in the world’s third largest economy was gathering momentum.

The broader Topix index closed 0.1 percent lower at 1,822.61, with banks Sumitomo Mitsui Financial and Mizuho Financial ending down over 1 percent each. Fast Retailing lost 1.4 percent after preliminary data showed Japanese supermarket sales dropped in November from a year ago.

Australian shares pulled back from near 10-year highs as the markets gave a relatively lukewarm response to the passage of the GOP’s tax plan in the U.S. Gains in the mining sector helped to limit overall losses to some extent.

The benchmark S&P/ASX 200 Index dropped 15.20 points or 0.3 percent to 6,060.40, while the broader All Ordinaries Index ended down 11.60 points or 0.2 percent at 6,156.30.

Banks ANZ, Commonwealth, NAB and Westpac fell between 0.6 percent and 0.9 percent. Firmer base metals prices helped lift miners, with BHP Billiton rallying 1.4 percent and Rio Tinto climbing 1 percent.

Oil and gas producer AWE tumbled 2.8 percent after it agreed to a revised takeover bid from mining services provider Mineral Resources. BlueScope Steel soared 4.3 percent after lifting its first-half guidance.

Seoul stocks plunged to a nearly three-month low after a late sell-off by foreign investors amid worries over a potential conflict with North Korea and on apprehension over fourth quarter earnings.

The benchmark Kospi slumped 42.54 points or 1.7 percent to 2,429.83, marking its biggest single-day loss since July. The index was dragged down by tech and chemical stocks. Tech heavyweights Samsung Electronics and SK Hynix lost 3-4 percent.

On the other hand, Chinese stocks rose after Xinhua news agency said the country is committed to maintaining economic growth in a reasonable range next year.

The benchmark Shanghai Composite Index climbed 13.08 points or 0.4 percent to 3,300.68, and Hong Kong’s Hang Seng Index advanced 132.97 points or 0.5 percent to 29,367.06.