Asian stocks fell Wednesday, with markets reacting to a surprise Australian trade deficit and its implications for the wider region, including China.
In Japan, the Nikkei 225 Index collapsed 230.40 points, or 2.3%, to 9,819.99. It marked the average’s biggest percentage drop since Nov. 1 and its first close below 10,000 since March 13.
Choppy trade for most Asian equities turned to solid losses after Australia said it ran a 480-million-Australian-dollar ($493-million U.S.) trade gap in February, compared to expectations for a A$1.1-billion surplus, according to a Dow Jones Newswires survey.
Japanese tech exporters were among the leading blue-chip decliners, with Sony Corp. falling 2.9%, Toshiba Corp. down 3.3%, Sharp Corp. losing 3.7%, and Panasonic Corp. dropping 3.6%.
Resource-linked firms were mostly lower across the region. The sector had already come under pressure after minutes from the Federal Reserve’s latest policy meeting showed less likelihood for further easing, weighing on many commodities.
Sydney-listed Newcrest Mining Ltd. traded down 2.4% and BHP Billiton gave up 1.3%.
In Japan, Sumitomo Metal Mining Co. fell 2.8% and Pacific Metals Co. lost 3.1%.
Steel maker Posco fell 1.5% in Seoul.
Japan’s retail sector was also a force in the market’s broader fall, with Fast Retailing Co. losing 5.7% to lead the decline after disappointing March domestic same-store sales results for its Uniqlo casual-clothing chain.
Likewise, J. Front Retailing Co. retreated 2.9%, and Takashimaya Co. dropped 2.5%.
Seven & I Holdings Co., after trading near flat levels, finished 1.1% lower. The owner of the 7-Eleven brand is set to become Japan’s first domestic retailer to exceed 300 billion yen ($3.62 billion U.S.) in operating profit, according to a Nikkei business daily report.
Markets in China, Hong Kong and Taiwan were closed.
In other markets;
Korea’s Kospi Index lost 30.67 points, or 1.5%, to 2,018.61
Singapore’s Straits Times Index shed 29.94 points, or 1%, to 2,985.04
New Zealand’s NZX 50 Index gained 7.33 points, or 0.2%, to 3,480.42
Australia’s S&P/ASX 200 Index subtracted 3.17 points, or 0.1%, to 4,333.86
