Asian Shares Close Mostly Lower Amid Rising Uncertainties in China

Asia-Pacific major stock markets are mostly trading lower on Wednesday, bucking the trend set by Wall Street overnight. Markets are weighed down by a firm dollar and a modest rise in US Treasury yields as risks of a global recession continued to weigh on investor prospects, although corporate earnings in the US allayed some growth fears.

Other catalysts behind the selling pressure are nervous investors in China amid ongoing Party Congress and higher-than-expected UK inflation readings.

Japan’s Nikkei 225 Index settled at 27257.38, up 101.24 or +0.37%. Hong Kong’s Hang Seng Index traded at 16588.25, down 326.33, or -1.93%, and South Korea’s KOSPI Index closed at 2237.44, down 12.51, or -0.56%.

In Australia, the S&P/ASX 200 Index was trading at 6800.10, up 20.90, or +0.31%, and in China, the benchmark Shanghai Index is trading at 2237.4, down 12.51, or -0, 56%

Also Read :  SiteMinder Research Shows Travel is Returning and Intent to Spend is Strong, Despite Rising Costs , Business News

China and Hong Kong stocks fall to caution during the convention

China’s stocks fell on Wednesday as investors wary of uncertainties amid the Communist Party Congress, even as a number of state-backed and big asset managers announced measures to stabilize the market, Reuters reported.

At least 21 major onshore wealth managers in China, including E Fund Management Co, Invesco Great Wall Fund Management and Bank of Communications Schroder Fund Management, announced this week that they are investing their own money to buy products to boost confidence in China Stabilize the capital market, local media reported.

Hong Kong Chief Executive John Lee fails to impress investors

In his first policy address since taking office in July, Lee said the government will allocate billions to attract businesses to the city and will implement a so-called Top Talent Pass program to “entice talent to pursue their careers in Hong Kong to continue”. CNBC reported.

Also Read :  One year later, growing global perils as Biden returns to UN

Hong Kong has lost thousands of residents since the pandemic began, exacerbating the “brain drain” from the international financial hub.

Stocks fell after Lee announced the government would allocate HK$30 billion (US$3.8 billion) to attract businesses to the city and introduce a so-called top talent pass program, to “bring talent to pursue their careers in Hong Kong”.

Australian stocks post modest gains

Dealers in Australia’s S&P/ASX 200 index shrugged off weaker crude oil prices to finish marginally higher for the session. The index was boosted by lithium mining stocks and travel stocks like Quantas. The best-performing issue in the benchmark index was Core Lithium, up 8.2 percent.

Also Read :  Woman Disrupts Ruto at Gachagua Brother's Burial [VIDEO]

Shares in former tech darling Megaport plunged 22.1 percent after revenue growth for the September quarter missed analysts’ expectations. The internet connectivity business reported total revenue for the quarter was $33.7 million, up 10 percent sequentially.

Investors remain nervous

Wednesday’s sessions began with high expectations after strong gains on Wall Street on Tuesday, but subsequent buying was not strong enough to sustain the rally.

Divergence from Wall Street suggests sellers are still in control in Asia. Lower trading on Thursday could erase all previous gains this week.


Leave a Reply

Your email address will not be published.