Modupe Gbadeyanka
By Investors Hub
Asian stocks fell on Wednesday amid rising fears about the U.S.-China trade war sapping economic growth around the world.
Investors watched for developments in the United States after House Speaker Nancy Pelosi announced a formal impeachment inquiry into U.S. President Donald Trump amid allegations he sought Ukraine’s help to smear former Vice President Joe Biden, who is the front-runner for the Democratic presidential nomination in 2020.
Chinese shares lost ground after Trump delivered a stinging rebuke of China’s trade practices on Tuesday at the United Nations General Assembly and added he would not accept a “bad deal” in trade talks with the country.
The benchmark Shanghai Composite Index slumped 29.91 points, or 1 percent, to 2,955.43, while Hong Kong’s Hang Seng Index tumbled 335.65 points, or 1.3 percent, to 25,945.35.
Japanese markets declined as the safe-haven yen strengthened on worries about escalating trade conflicts and political uncertainty in the U.S. The Nikkei 225 Index ended down 78.69 points, or 0.4 percent, at 22,020.15, while the broader Topix closed 0.2 percent lower at 1,620.08.
Market heavyweight SoftBank fell 2.3 percent, Fanuc lost 3 percent and Fast Retailing gave up 1.2 percent. Energy major Japan Petroleum tumbled 2.7 percent.
On the other hand, drug stocks surged, with Takeda Pharmaceutical, Chughai Pharmaceutical, Sumitomo Dainippon Pharma and Eisai Co. rallying 2-5 percent.
In economic news, the Bank of Japan is ready to take additional easing measures if the momentum towards achieving the inflation target is lost, Board Member Takako Masai said today.
Masai said the bank would thoroughly examine risks to overseas economies and carefully assess how those risks affect Japanese economic activity and prices.
Separately, minutes from the Bank of Japan’s July meeting revealed that policymakers discussed the need for the central bank to take a preemptive response to downside risks to the economy and prices.
Australian markets fell amid concerns about the escalating trade tensions between the world’s two largest economies. The benchmark S&P/ASX 200 Index dropped 38.70 points, or 0.6 percent, to 6,710.10, while the broader All Ordinaries Index ended down 41.90 points, or 0.6 percent, at 6,814.70.
Miners led the losses, with BHP, Fortescue Metals Group and Rio Tinto falling around 2 percent as iron ore prices fell on growth concerns.
Energy majors Woodside Petroleum, Oil Search and Origin Energy gave up 1-3 percent as oil prices extended losses for the second straight day on worries about falling fuel demand. Beach Energy shares plunged 5.6 percent.
Banks ended on a mixed note, while gold miners Newcrest and Regis Resources climbed 1-2 percent after gold prices rose to a nearly three-week high overnight amid growing calls for Trump’s impeachment.
Meanwhile, Afterpay Touch Group, the buy now, pay later service company, soared 13.3 percent after submitting an external audit report on money laundering to AUSTRAC.
Seoul stocks fell sharply to snap a 13-day winning streak as U.S. lawmakers began a formal impeachment inquiry into Trump over allegations that he abused his presidential powers and sought help from a foreign government to undermine Democratic foe Joe Biden and help his own reelection.
The benchmark Kospi tumbled 27.65 points, or 1.3 percent, to close at 2,073.39, dragged down by technology and pharmaceutical stocks. Samsung Electronics, Celltrion and SK Hynix dropped 1-2 percent. LG Chem plunged 6.7 percent on earnings concerns.
