Asian stocks fell on Wednesday as weak manufacturing data from the U.S. and the eurozone added to investor worries about slowing global economic growth. Markets were further rattled by North Korea’s firing of what is believed to be a submarine-launched ballistic missile.
Mainland Chinese markets remained closed for the National Day holiday, while Hong Kong’s Hang Seng Index slipped 49.58 points, or 0.2 percent, to 26,042.69 after fresh violent demonstrations in the city that saw one protester shot by police.
Japanese shares also fell as weak manufacturing data from the U.S. offered fresh evidence that the U.S.-China trade war is slowing global growth.
The Nikkei 225 Index dropped 106.63 points, or 0.5 percent, to 21,778.61, while the broader Topix closed 0.4 percent lower at 1,596.29.
Exporters ended broadly lower as the weak U.S. data weighed on the U.S. dollar and prompted some long-unwinding trade. Toyota Motor, Honda Motor and Sony declined 1-2 percent.
Tech stocks closed on a mixed note, with Advantest rising 0.7 percent, while Tokyo Electron dropped 1.1 percent. Market heavyweight SoftBank gave up 2.7 percent.
In economic news, Japanese firms’ inflation expectations held steady in the third quarter, the Tankan summary of “Inflation Outlook of Enterprises” from Bank of Japan showed today. Companies expect annual inflation of 0.9 percent in the year ahead, unchanged from the previous outlook.
Australian markets fell sharply to hit a three-week low as investors fretted over slowing global growth. The benchmark S&P/ASX 200 Index tumbled 102.90 points, or 1.5 percent, to 6,639.90, while the broader All Ordinaries Index ended the session down 99.70 points, or 1.5 percent, at 6,753.30.
National Australia Bank lost 2.3 percent after the lender said it would set aside a further A$1.18 billion (S$1.1 billion) to repay wrongly charged customer fees. The other three big banks fell between 1.5 percent and 2.1 percent.
Lower commodity prices pulled down miners, with BHP and Rio Tinto falling 1.9 percent and 1.6 percent, respectively. Energy stocks such as Woodside Petroleum and Santos dropped over 1 percent, while Beach Energy slumped 3.2 percent.
Mayne Pharma Group soared 19 percent after it signed a 20-year supply and license agreement with Belgium-based Mithra Pharmaceuticals to commercialize a new contraceptive drug.
Seoul stocks plunged as weak manufacturing data from the U.S. and the eurozone coupled with rising geopolitical tensions sapped investors’ appetite for risk.
After North Korea fired a ballistic missile from the sea, the National Security Council in Seoul expressed “strong concern” over the launch of what it said may have been a submarine-launched ballistic missile.
The Kospi lost 40.51 points, or 2 percent, to finish at 2,031.91. Samsung Electronics declined 2.6 percent, while SK Hynix and Hyundai Motor lost around 3 percent each.
