Asia-Pacific markets traded mostly lower as recession fears grow. Disappointing U.S. retail sales for November suggested inflation is taking a toll on consumers and raising fears that the Fed’s rate hikes are tipping the economy into a recession.
In Japan, the Nikkei 225 plummeted 524.58 points, or 1.9%, to 27,527.12.
Discussions to remove the Bank of Japan’s yield curve control program, which caps 10-year bond yields around 0%, could pick up next year,
Reuters reported.
Senior officials are increasingly seeing a case to remove the YCC program that was introduced in 2016, as the nation’s wages rise and economic risks remain contained, Reuters reported the people as saying.
In Hong Kong, the Hang Seng gained 82.08 points, or 0.4%, to 19,450.67.
Hong Kong will release its unemployment rate reading for the September-November period later in the day.
Singapore’s economy will likely contract at the start of 2023 before it rebounds in the second quarter, according to an expert at Nomura.
The city-state is not going to “get into a technical recession, but in Q1 next year, we’re probably going to get a contraction in the GDP number.”
Singapore is slated to report its fourth quarter GDP no later than Jan. 13.
CHINA
In Shanghai, the CSI 300 nicked ahead 2.24 points, or 0.1%, to 3,954.23, as the second day of China’s annual Central Economic Work Conference reportedly took place behind closed doors.
The U.S. Commerce Department slapped restrictions on Chinese companies over their efforts to use advanced technologies to help modernize China’s military. That comes just two months after the Biden administration curbed China’s access to advanced semiconductors.
Shares of Chinese technology companies listed on mainland exchanges fell in Asia trade after the U.S. government announced a list of companies that will face restrictions over their efforts to help modernize China’s military.
Chinese artificial intelligence developer Cambricon Technologies’ shares listed in Shanghai fell more than 4% in Asia’s afternoon session after falling 6% in the morning.
China Electronics Technology Group also fell more than 2%.
In other markets
In Taiwan, the Taiex stumbled 205.58 points, or 1.4%, to 14,528.55
In Korea, the Kospi index edged up 0.95 points to 2,360.02.
In Singapore, the Straits Times Index dipped 32.94 points, or 1%, to 3,240.81.
In Australia, the ASX 200 fell 56.11 points, or 0.8%, to 7,148.68
In New Zealand, the NZX 50 eked up 1.67 points to 11,603.66.
