Bulletin
Investor Alert

Asia Markets Archives | Email alerts

Oct. 22, 2019, 11:38 p.m. EDT

Asian markets slip on renewed geopolitical uncertainty

Hang Seng dips on report Hong Kong leader may be replaced

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Hang Seng Index (HSI)
  • X
    Shanghai Composite Index (SHCOMP)
  • X
    Shenzhen Composite Index (399106)

or Cancel Already have a watchlist? Log In

By Marketwatch and Associated Press


Reuters
A couple walks on a beach during sunset in Hong Kong on Tuesday.

Asian markets retreated in early trading Wednesday amid new uncertainty involving Brexit and Hong Kong.

On Tuesday, British Prime Minister Boris Johnson won Parliament’s backing for the substance of his exit deal but lost a key vote on its timing, a result that inches him closer to his goal of leading his country out of the European Union — but effectively guarantees it won’t happen on the scheduled date of Oct. 31. The votes plunge the tortuous Brexit process back into grimly familiar territory: acrimonious uncertainty.

Late Tuesday, the Financial Times reported that China is preparing plans to replace embattled Hong Kong administrator Carrie Lam, whose government has been the subjects of massive pro-democracy protests for five months. The report said a new administrator could be in place by March.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.85%   fell 1%, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.22%   and Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 -0.78%   dropped about 0.3% each. Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +1.05%   was about flat while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.26%   slipped 0.6%. Benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.34%  , Singapore /zigman2/quotes/210597985/delayed SG:STI +0.32%   and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.23%   dipped, but stocks rose slightly in Malaysia /zigman2/quotes/210598052/delayed MY:FBMKLCI +0.98%  . Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.87%   declined 0.2%.

Among individual stocks, SoftBank /zigman2/quotes/207303954/delayed JP:9984 +1.81%   fell in Tokyo trading after announcing a deal to take over WeWork, offering the beleaguered startup a $5 billion lifeline. Rakuten /zigman2/quotes/201861450/delayed JP:4755 -2.85%   and Sony /zigman2/quotes/201361720/delayed JP:6758 +3.22%   also declined. In Hong Kong, tech companies AAC /zigman2/quotes/201441510/delayed HK:2018 -1.87%  and Tencent /zigman2/quotes/204605823/delayed HK:700 -1.11%   dropped, along with oil producer CNOOC /zigman2/quotes/203421416/delayed HK:883 +4.81%  . Apple component maker LG Display /zigman2/quotes/204226570/delayed KR:034220 +3.56%   and chip maker SK Hynix /zigman2/quotes/206420319/delayed KR:000660 -1.01%   sank in South Korea. Beach Energy /zigman2/quotes/200513631/delayed AU:BPT -1.21%   and National Australia Bank /zigman2/quotes/210431826/delayed AU:NAB +3.39%   declined in Australia.

Earlier, U.S. shares retreated, led by a tech sell-off, as investors weighed mixed earnings from McDonald’s, Procter & Gamble and other big companies. That blunted investor optimism that had been fed by hopes for progress in settling a damaging U.S.-Chinese tariff war.

“Alongside Brexit, the relatively mixed set of earnings out of the US overnight provides poor leads for Asia markets,” said Jingyi Pan of IG in a report.

More results from Boeing /zigman2/quotes/208579720/composite BA +3.29%  , Caterpillar /zigman2/quotes/203434128/composite CAT +1.21%   and other industrial names due Wednesday “could cap the gains for the S&P 500 index,” said Pan.

On Wall Street, the benchmark S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.62%   fell 0.4% to 2,995.99. The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.54%   dropped 0.2% to 26,788.10. The Nasdaq /zigman2/quotes/210598365/realtime COMP +1.31%  , which is heavily weighted with technology stocks, bore the brunt of the selling, losing 0.7% to 8,104.30.

Investors have been shifting their focus to corporate earnings reports as they wait for developments in U.S.-Chinese trade negotiations. Investors were optimistic after President Donald Trump agreed to postpone a planned tariff hike following the latest talks in Washington. That helped the S&P 500 to turn in gains for the past two weeks.

Analysts came into this latest earnings season expecting profits to decline overall for companies in the S&P 500. But with about 15% of companies in the index reporting so far, results have been unexpectedly positive.

Earnings growth fell slightly in the first and second quarters, according to data from FactSet, which was better than Wall Street’s expectation at the start of those reporting seasons.

A few large companies disappointed investors Tuesday. McDonald’s /zigman2/quotes/203508018/composite MCD +1.25%   slid 5% after reporting that third-quarter profit and revenue fell short of forecasts. It was one of the big decliners among companies that rely on consumer spending. Travelers /zigman2/quotes/206313935/composite TRV +1.31%   led the financial sector slide. The insurance company sank 8.3% after it reported lower-than-expected earnings.

Benchmark U.S. crude   lost 41 cents to $54.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.97 on Tuesday to close at $54.48. Brent crude  , used to price international oils, retreated 32 cents to $59.39 per barrel in London. It rose $1.74 the previous session to $59.70.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0211%   declined to 108.30 yen from Tuesday’s 108.46 yen.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,814.66
+226.46 +0.85%
Volume: 1.44M
Nov. 25, 2020 12:05p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,395.33
-7.49 -0.22%
Volume: 20.38B
Nov. 25, 2020 12:39p
loading...
/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
2,276.29
-17.86 -0.78%
Volume: 23.26B
Nov. 25, 2020 11:30a
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
26,441.43
+275.84 +1.05%
Volume: 0.00
Nov. 25, 2020 1:34p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,624.68
+6.92 +0.26%
Volume: 1.03M
Nov. 25, 2020 1:34p
loading...
/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
13,760.40
-46.73 -0.34%
Volume: 0.00
Nov. 25, 2020 12:34p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,900.75
+9.12 +0.32%
Volume: 0.00
Nov. 25, 2020 12:39p
loading...
/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
5,714.22
+13.20 +0.23%
Volume: 0.00
Nov. 25, 2020 11:30a
loading...
/zigman2/quotes/210598052/delayed
MY : Malaysia
1,593.83
+15.44 +0.98%
Volume: 0.00
Nov. 25, 2020 12:39p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,702.10
+58.00 +0.87%
Volume: 716,824
Nov. 25, 2020 3:34p
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,959.00
+124.00 +1.81%
Volume: 12.72M
Nov. 25, 2020 1:34p
P/E Ratio
31.79
Dividend Yield
0.00%
Market Cap
¥12683.53 billion
Rev. per Employee
¥76.45M
loading...
/zigman2/quotes/201861450/delayed
JP : Japan: Tokyo
¥ 1,126.00
-33.00 -2.85%
Volume: 5.05M
Nov. 25, 2020 1:34p
P/E Ratio
N/A
Dividend Yield
0.40%
Market Cap
¥1535.52 billion
Rev. per Employee
¥63.03M
loading...
/zigman2/quotes/201361720/delayed
JP : Japan: Tokyo
¥ 9,796.00
+306.00 +3.22%
Volume: 8.84M
Nov. 25, 2020 1:34p
P/E Ratio
13.10
Dividend Yield
0.46%
Market Cap
¥11391.90 billion
Rev. per Employee
¥73.75M
loading...
/zigman2/quotes/201441510/delayed
HK : Hong Kong
HK$ 41.90
-0.80 -1.87%
Volume: 4.91M
Nov. 25, 2020 11:59a
P/E Ratio
25.69
Dividend Yield
0.24%
Market Cap
HK$50.64 billion
Rev. per Employee
HK$411,637
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 577.50
-6.50 -1.11%
Volume: 9.16M
Nov. 25, 2020 11:59a
P/E Ratio
41.14
Dividend Yield
0.21%
Market Cap
HK$5568.92 billion
Rev. per Employee
HK$6.80M
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
HK$ 9.58
+0.44 +4.81%
Volume: 82.25M
Nov. 25, 2020 11:59a
P/E Ratio
9.35
Dividend Yield
6.78%
Market Cap
HK$409.86 billion
Rev. per Employee
HK$13.96M
loading...
/zigman2/quotes/204226570/delayed
KR : S. Korea: KRX
16,000.00
+550.00 +3.56%
Volume: 5.02M
Nov. 25, 2020 1:34p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
₩5510.36 billion
Rev. per Employee
₩880.39M
loading...
/zigman2/quotes/206420319/delayed
KR : S. Korea: KRX
97,600.00
-1,000 -1.01%
Volume: 2.46M
Nov. 25, 2020 1:34p
P/E Ratio
23.26
Dividend Yield
1.02%
Market Cap
₩68400.18 billion
Rev. per Employee
₩955.63M
loading...
/zigman2/quotes/200513631/delayed
AU : Australia: Sydney
$ 1.83
-0.02 -1.21%
Volume: 21.50M
Nov. 25, 2020 3:33p
P/E Ratio
8.36
Dividend Yield
1.09%
Market Cap
$3.91 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210431826/delayed
AU : Australia: Sydney
$ 24.12
+0.79 +3.39%
Volume: 6.03M
Nov. 25, 2020 3:34p
P/E Ratio
30.07
Dividend Yield
2.49%
Market Cap
$74.69 billion
Rev. per Employee
$763,679
loading...
/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 218.49
+6.96 +3.29%
Volume: 31.13M
Nov. 24, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$119.41 billion
Rev. per Employee
$475,227
loading...
/zigman2/quotes/203434128/composite
US : U.S.: NYSE
$ 176.90
+2.12 +1.21%
Volume: 3.45M
Nov. 24, 2020 7:00p
P/E Ratio
29.39
Dividend Yield
2.33%
Market Cap
$94.95 billion
Rev. per Employee
$525,797
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,635.41
+57.82 +1.62%
Volume: 3.19B
Nov. 24, 2020 5:11p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
30,046.24
+454.97 +1.54%
Volume: 436.45M
Nov. 24, 2020 5:11p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
12,036.79
+156.15 +1.31%
Volume: 5.88M
Nov. 24, 2020 5:16p
loading...
/zigman2/quotes/203508018/composite
US : U.S.: NYSE
$ 219.71
+2.71 +1.25%
Volume: 3.87M
Nov. 24, 2020 7:00p
P/E Ratio
33.54
Dividend Yield
2.35%
Market Cap
$161.69 billion
Rev. per Employee
$102,812
loading...
/zigman2/quotes/206313935/composite
US : U.S.: NYSE
$ 136.39
+1.76 +1.31%
Volume: 2.10M
Nov. 24, 2020 7:00p
P/E Ratio
15.62
Dividend Yield
2.49%
Market Cap
$34.10 billion
Rev. per Employee
$1.03M
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
104.4600
+0.0220 +0.0211%
Volume: 0.0000
Nov. 24, 2020 11:53p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.