Asian markets fell on Wednesday, with Japan and Hong Kong leading the region lower, as concerns over China’s economy continued to weigh heavily.
Japan’s Nikkei 225 index dumped 393.72 points, or 2.6%, to 14,830.39, as the yen strengthened against the U.S. dollar. The greenback fell below the ¥103 level in Asian trading to ¥102.89, adding to a 0.3% fall overnight. However, it picked up slightly and was last trading at ¥103.02.
The Hang Seng Index in Hong Kong plummeted 367.66 points, or 1.7%, to 21,901.95
In Australia, a report that showed consumer confidence in the country fell in March, extending its decline from a post-election peak in November, also weighed on sentiment. Stocks of retailers fell as a result: David Jones lost 2.4% and Wesfarmers was 1.6% lower.
Stocks in large miners in Sydney also remained under pressure, with Rio Tinto losing 0.5% and BHP Billiton declining 0.9%. Fortescue Metals Group, which fell precipitously at the beginning of the week, managed to make a recovery and was last up 0.9%.
CHINA
The state of the world’s second largest economy remained in focus as the effects of a much weaker-than-expected decline in Chinese exports that rocked markets at the beginning of the week continued to be felt.
Even so, the Shanghai CSI 300 Index gained 5.47 points, or 0.3%, to 2,114.13
In addition, there were concerns over the state of the country’s corporate sector. Investors remained jittery over signs of weakness in the bond market after last week’s default by Chinese solar company Chaori Shanghai Solar Energy Science & Technology Co.
On Wednesday, the focus was on Shanghai-listed Baoding Tianwei Baobian Electric Co., a power equipment manufacturer for the new energy sector.
Shares in the company sank 5.1%, while its corporate bond was suspended for a second day, after it reported a full-year net loss for the second consecutive year, which led to a de-listing warning.
In other markets;
In Taiwan, the Taiex dipped 17.60 points, or 0.2%, to 8,684.73
Singapore’s Straits Times Index shed 31.97 points, or 1%, to 3,097.43
Korea’s Kospi Index fell 31.33 points, or 1.6%, to 1,932.54
The New Zealand Exchange 50 index slid 5.41 points, or 0.1%, to 5,096.53
In Australia, the S&P/ASX 200 skidded 29.64 points, or 0.6%, to 5,384.20.
