After a strong rally in recent weeks, markets were looking for further clarity from central banks around the world about how they are going to address the weak global economy. The Dow Jones Industrial Average experienced its largest decline in almost three weeks, hurting Asian sentiment.
"People are realizing that markets have recently seen some highs and they are banking some profits ahead of risk events," said Justin Harper, markets strategist at IG Markets in Singapore.
While there remain hopes that the European Central Bank will introduce measures to tackle the continuing European debt crisis, the immediate focus is on the Federal Reserve. Minutes for the Fed's most recent meeting will be released later Wednesday, which will be scrutinized for clues about the direction of U.S. monetary policy.
The earnings season continued in Australia, where the S&P ASX 200 was 0.1% lower with BHP down 0.4% ahead of its results.
Results already out include oil and gas company Woodside Petroleum, which dropped 3% after announcing that net profit fell 1.9% in the first half; while insurer Suncorp Group added 3% after posting a 60% increase in annual net profit.
In Hong Kong, the Hang Seng Index was down 0.9%, as commodity and retail stocks led declines. Earnings also remained in focus: Hong Kong and China Gas was up 0.1% after announcing a 27.8% on-year increase in net profit in the first half, resting after hitting a 52-week high on Tuesday before the results were released.
Oil giant Cnooc was 1.7% lower as investors continue to digest its earnings report released Tuesday, when it dropped 3%.
The Shanghai Composite was 0.4% lower.
Japan's Nikkei was down 0.4% as a strengthening yen and disappointing trade data for July did little to help sentiment. Though the yen gave back some of its 0.2% overnight gains--at Y79.28 to the dollar compared with Y79.25 late Tuesday--analysts said that the strengthening Japanese unit was affecting the local market.
"A pause in yen selling against the dollar is weighing on the index," said Okasan Securities strategist Hideyuki Ishiguro in Japan.
South Korea's Kospi was also down 1.1% with investors offloading technology, motor-vehicle and chemical stocks. Samsung Electronics lost 1.7%, Hyundai Motor was 1.4% lower, and LG Chem dropped 0.6%.
"Institutional investors are selling blue chips on profit-taking, weighing down the main index," said Lee Kyoung-min, an analyst at Woori Investment & Securities in South Korea.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment