Stocks in Asia were mostly higher on Wednesday as the International Monetary Fund said the global economy is set to see a more significant contraction than it previously forecast.
In Tokyo, the Nikkei 225 doffed 126.45 points, or 0.6%, to 22,455.76
In regional economic data, Japan’s exports plunged 28.3% year-on-year in May, according to provisional trade statistics released Wednesday by the country’s Ministry of Finance.
The Japanese yen traded at 107.31 per U.S. dollar after seeing levels around 107 earlier in the trading week.
The Hang Seng index in Hong Kong added 137.32 points, or 0.6%, to 24,481.41.
Investors likely also continued to watch for developments on the geopolitical front regionally, as tensions escalate along the Korean peninsula after North Korea reportedly destroyed a liaison office with the South. Following that action by the North, South Korea’s presidential Blue House said Wednesday that it would no longer accept unreasonable behavior by North Korea.
Certain Asia-listed defense stocks soared on the back of those developments, with Ishikawa Seisakusho in Japan jumping 14.2% while Victek in South Korea skyrocketed 29.9%. South Korean stocks exposed to North Korea, on the other hand, fell: Hanil Hyundai Cement fell 4.2%, and Hyundai Elevator tumbled 3.9%.
The South Korean won also weakened against the greenback, last trading at 1,214.04. Earlier, it had touched a low of 1,218.76 per dollar.
IMF Chief Economist Gita Gopinath said in a Tuesday blog post that "the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated." The fund also said the current crisis, which it dubbed the Great Lockdown, is "unlike anything the world has seen before."
Authorities have imposed lockdown measures to curb the spread of the coronavirus pandemic, leaving most economies essentially frozen. While many countries have begun to ease these measures, it has proven challenging given the looming threat of a potential resurgence in COVID-19 cases.
Meanwhile, trial results announced Tuesday showed dexamethasone — a widely available drug — can help critically ill coronavirus patients.
The treatment reportedly reduced COVID-19 deaths in hospitalized patients by up to one third. Globally, more than eight million people have been infected by the virus while at least 438,171 lives have been taken, according to data compiled by Johns Hopkins University.
The Australian dollar changed hands at $0.6896 after slipping from levels above $0.693 yesterday.
In other markets
In Shanghai, the CSI 300 inched ahead 3.02 points, or 0.1%, to 4,017.59.
In Korea, the Kospi gained three points, or 0.1%, to 2,141.05
In Taiwan, the Taiex index moved ahead 22.95 points, or 0.2%, to 11,534.59
In Singapore, the Straits Times Index gained 2.77 points, or 0.1%, to 2,669.62.
In New Zealand, the NZX 50 popped 380.46 points, or 3.5%, to 11,334.31
In Australia, the ASX 200 surged 49.47 points, or 0.8%, to 5,991.77.
