Bulletin
Investor Alert

Asia Markets Archives | Email alerts

June 14, 2018, 6:59 a.m. EDT

Asian stocks swing lower after Fed rate hike

Business activity in China slows in May

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 Dow Jones Newswire


Bloomberg News
Korean construction stocks were particularly hard hit Thursday.

Asian stock markets finished lower Thursday after the U.S. Federal Reserve indicated two more rate hikes are coming later this year, and as Chinese economic data missed expectations.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -2.19%  fell 0.9%. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.57% lost 0.2% and the Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 -0.35%  dropped 0.6%. The startup-heavy ChiNext dropped 0.8% to set another four-month closing low. It’s fallen 13 of the past 16 trading days.

While the regional market was colored by selling after Wednesday’s hawkish Fed comments sent U.S. stocks sliding late, also overhanging in China was soft May economic data, including industrial output and retail sales, and looming U.S. tariffs on Chinese goods. Financial stocks, though, rose as the People’s Bank of China didn’t raise interest rates following the Fed’s move, raising the prospects of a reserve-requirement cut soon.

The Federal Reserve on Wednesday lifted its benchmark federal funds rate by a quarter-percentage point — to a range of 1.75% to 2%, meeting expectations. The Fed also signaled that it plans a total of four rate increases in 2018 instead of three as previously planned. Wednesday’s hike was the second this year.

Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.61%  ended 0.9% lower. But Toshiba /zigman2/quotes/205628942/delayed JP:6502 +0.34%   rose 2.7% , extending Wednesday’s 6.6% jump on the conglomerate’s plan to buy back more than $6 billion worth of shares.

Read: Toshiba plans biggest Japanese market buyback on record

South Korean stocks lagged behind after Wednesday’s trading day off for local elections. The Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.07%   declined 1.8%. Construction names, which have surged since late April amid a Korean Peninsula thaw, continued the pullback seen during Tuesday’s Trump-Kim summit. Hyundai Engineering /zigman2/quotes/210277561/delayed KR:000720 +0.39%   sank 8.6% while construction-materials maker Busan Industrial /zigman2/quotes/202117791/delayed KR:011390 -2.30%   slid 16%.

Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -2.46%  shed 0.1%. Singapore’s benchmark /zigman2/quotes/210597985/delayed SG:STI -1.65%  gave up 1.1% and Taiwan’s benchmark  fell 1.4%.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,085.79
-517.69 -2.19%
Volume: 2.88M
April 1, 2020 4:08p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,734.52
-15.77 -0.57%
Volume: 21.73B
April 1, 2020 3:01p
loading...
/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
1,660.08
-5.85 -0.35%
Volume: 33.31B
April 1, 2020 3:00p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
17,955.45
-109.96 -0.61%
Volume: 0.00
April 2, 2020 9:35a
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 2,343.00
+8.00 +0.34%
Volume: 241,200
April 2, 2020 9:34a
P/E Ratio
N/A
Dividend Yield
0.85%
Market Cap
¥1079.53 billion
Rev. per Employee
¥26.86M
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
1,684.21
-1.25 -0.07%
Volume: 197,954
April 2, 2020 9:35a
loading...
/zigman2/quotes/210277561/delayed
KR : S. Korea: KRX
25,900.00
+100.00 +0.39%
Volume: 254,206
April 2, 2020 9:35a
P/E Ratio
7.09
Dividend Yield
2.32%
Market Cap
₩3059.44 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202117791/delayed
KR : S. Korea: KRX
97,700.00
-2,300 -2.30%
Volume: 16,066
April 2, 2020 9:34a
P/E Ratio
26.52
Dividend Yield
0.26%
Market Cap
₩115.10 billion
Rev. per Employee
₩2.55B
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,129.10
-129.50 -2.46%
Volume: 267,745
April 2, 2020 11:35a
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,440.27
-40.96 -1.65%
Volume: 0.00
April 1, 2020 5:20p
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.