Asian stocks traded mostly lower Wednesday, pulling back after several consecutive sessions of gains, following disappointing earnings results from U.S. tech and industrial heavyweights.
In Japan, the Nikkei 225 index erased 248.30 points, or 1.2%, to 20,539.67, snapping a six-session win streak.
In Hong Kong, the Hang Seng Index plummeted 253.81, or 1%, to 25,282.62.
One expert said International Business Machine Corp.’s earnings miss and Apple Inc.’s weak iPhone revenue outlook will weigh on Japan’s technology shares, while the market as a whole is in line for a routine round of profit-taking.
Industrial behemoth United Technologies Corp. posted weak numbers and Microsoft Corp. reported a $3.2-billion U.S. quarterly loss.
In Hong Kong, MNI’s China Business Sentiment Indicator for July fell to a three-month low.
The U.S. dollar was down 0.1% against the yen at ¥123.75.
Spot gold drifted lower in Asian trade to $1,092.90 U.S. an ounce, below the $1,100 mark where many miners break even. Crude oil futures also declined on bearish U.S. supply data, with Brent down 65 cents at $56.39 U.S. a barrel.
A strengthening dollar has sent commodities from oil to copper tumbling, by making the dollar-priced raw materials more expensive for buyers using foreign currencies.
CHINA
In China, the CSI 300 docked 8.85 points, or 0.2%, to 4,157.16
The Chinese government has continued on its path of monetary easing to support the economy and investors expect that will buoy the market, although its rebound from a heavy selloff has been uneven. The Shanghai Composite remains off 23% from its seven-plus-year high on June 12 and authorities are expected to continue their tightening efforts on margin trading, which could push the market down.
China’s central bank has injected additional capital into two of the nation’s policy banks to help them better support a weakening economy, according to a Tuesday report in Caixin, a local business magazine.
The People’s Bank of China has injected $48 billion U.S. into China Development Bank and $45 billion U.S. into the Export-Import Bank of China, according to the report. China’s Ministry of Finance has injected $16 billion U.S. into the Agricultural Development Bank of China, another government-run policy bank, the report said.
In other markets
In China, the CSI 300 docked 8.85 points, or 0.2%, to 4,157.16
Singapore’s Straits Times Index dipped 12.24 points, or 0.4%, to 3,359.17
In Taiwan, the Taiex index dropped 87.26 points, or 1%, to 8,918.70
In Korea, the Kospi index fell 18.89 points, or 0.9%, to 2,064.73
The NZX 50 gained 50.84 points, or 0.9%, to 5,927.75
The ASX 200 Index drooped 92.15 points, or 1.6%, to 5,614.57
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