The Asia-Pacific markets experienced a decline on Wednesday following the halt of the eight-day winning streak of U.S. benchmark indexes, the S&P 500 and the Nasdaq Composite. The S&P 500 saw a decrease of 0.2%, while the Nasdaq Composite slipped by 0.33%. The Dow Jones Industrial Average also dropped by 0.15%. If the S&P had managed to gain on Tuesday, it would have marked the longest winning streak for the broad index since 2004.
In Japan, the trade data for July revealed that exports rose by 10.3% year on year, while imports increased by 16.6%. However, economists had predicted a higher export growth rate of 11.4% and a lower import growth rate of 14.9%. This discrepancy led to Japan swinging to a trade deficit of 621.84 billion yen ($4.28 billion), surpassing the economists’ expectations of 330.7 billion yen. This trade data, recorded in July, was the last before the Bank of Japan’s decision to raise interest rates at the end of the month, triggering a significant strengthening of the yen.
Following the trade data release, Japan’s Nikkei 225 index declined by 0.88%, while the broader Topix index fell by 0.6%. The Hang Seng index in Hong Kong experienced a more significant drop of 1.38%, leading the losses in Asia. On the other hand, mainland China’s CSI 300 index was lower by 0.57%. The decline in the Hang Seng index was attributed to losses in technology and consumer cyclical stocks, with e-commerce giant JD.com being the primary driver with an 11.4% decrease. This occurred after U.S. retail giant Walmart announced its intention to sell its stake in JD.com, potentially amounting to $3.74 billion, adding pressure to the market.
South Korea’s Kospi index saw a marginal decrease of 0.23%, while the small-cap Kosdaq index dropped by 1.13%. Australia’s S&P/ASX 200 index also experienced a decline of 0.48%, reflecting the overall trend of market corrections in the region following the negative sentiment from the U.S. markets.
The Asia-Pacific markets were influenced by the performance of U.S. benchmark indexes, leading to a broad decline in major indices across the region. The trade data from Japan and developments in specific companies such as JD.com and Walmart added to the negative sentiment, contributing to the overall market corrections witnessed in Asia on that particular day.
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