Asian Shares Fall After Wall Street Posts First 2018 Loss

By Investors Hub

Most Asian stocks fell on Thursday after Wall Street experienced its first losing session this year, hit by reports that China may slow or halt purchases of U.S. Treasuries and that President Donald Trump may pull the U.S. out of the North American Free Trade Agreement.

Japanese shares ended modestly lower, hit by weak cues from Wall Street and a strong yen. The Nikkei 225 Index dropped 77.77 points or 0.3 percent to 23,710.43, while the broader Topix Index closed 0.2 percent lower at 1,888.09.

Automakers Toyota and Honda fell 1-2 percent as the dollar suffered its biggest one-day drop in nearly eight months against the yen. Financials bucked the downtrend, with banks Mitsubishi UFJ Financial and Sumitomo Mitsui Financial rising 0.6 percent and 1 percent, respectively.

Australian shares fell for a second consecutive session after U.S. stocks snapped a six-session winning streak on Wednesday amid jitters over rising bond yields.

The benchmark S&P/ASX 200 Index dropped 29.10 points or 0.5 percent to 6,067.60, and the broader All Ordinaries Index closed 29.70 points or 0.5 percent lower at 6,176.20.

Banks ANZ, Commonwealth and Westpac fell between 0.2 percent and 0.5 percent, while mining heavyweight BHP Billiton shed 0.4 percent.

Rio Tinto closed roughly flat after receiving a binding offer from Liberty House for its Aluminium Dunkerque smelter in northern France.

Energy stocks closed broadly lower despite crude oil prices rising 1 percent overnight. Gold miners Evolution Mining and Newcrest rose 1.2 percent and 0.7 percent, respectively as gold prices extended gains for a second day on dollar weakness.

Investors largely ignored upbeat data showing that Australia’s retail sales rose more than expected in November.

Meanwhile, China’s Shanghai Composite Index inched up 3.74 points or 0.1 percent to 3,425.57 to extend gains for the tenth straight session. Hong Kong’s Hang Seng Index edged up 46.67 points or 0.2 percent to 31,120.39.

Chinese Premier Li Keqiang reportedly said the economy expanded around 6.9 percent in 2017. The economic situation is “better than expected,” Li said in a forum in Cambodia.