Asian stock markets traded mostly lower on Thursday, taking mixed cues from Wall Street amid persistent uncertainty over interest rates.
The sentiment was influenced by US jobs data, which provided a mixed picture of the labour market, and Federal Reserve meeting minutes indicating a cautious stance on future monetary policy decisions.
Japan’s Nikkei extends decline
In Japan, the Nikkei 225 declined 1% to 39,547.53, with losses driven by technology, exporter, and heavyweight stocks.
Among the notable movers, SoftBank Group fell nearly 1%, Toyota dropped 2%, and technology companies such as Advantest and Tokyo Electron lost close to 2% each.
The broader Topix index slid by 0.59%, with growth shares dropping 0.68%, compared to a 0.51% decline in value shares.
China’s market slips, Hang Seng rebounds
China’s Shanghai Composite and Shanghai Shenzhen CSI 300 indices both were flat on Thursday, reflecting subdued investor sentiment.
Inflation data for December showed the consumer price index was flat, while producer price inflation shrank for the 27th consecutive month.
Weak consumer sentiment and deflationary pressures continue to weigh on the Chinese economy despite Beijing’s aggressive stimulus measures.
Hong Kong’s Hang Seng Index edged slightly higher, supported by gains in select technology stocks.
Tencent rebounded 2%, ending a six-day losing streak, while Xiaomi surged 3.9%. Other technology names saw mixed performances, with Alibaba rising 0.4%, Meituan falling 1.5%, and JD Group slipping 0.6%.
Investors remain focused on potential fiscal measures from Beijing to spur consumer spending, which has been hampered by prolonged weakness in the property market. Across the region, concerns over global interest rates and slowing growth are likely to keep markets volatile in the near term.
Other regional markets
The Australian market ended a five-session winning streak, with the S&P/ASX 200 falling 0.50% to 8,307.80 and the broader All Ordinaries index down 0.49% to 8,557.10.
Losses were broad-based, led by the technology and financial sectors, while gold miners were among the few sectors to see gains.
The KOSPI index has shown positive movement, currently trading at 2533.06, up by 12.01 points (0.49%) from the previous day.
After an initial drop to 2515.82 in early trading, it fluctuated before climbing to 2532.89.
Foreign investors were active in the securities market, with a net purchase of 354.3 billion won, while institutions and individuals sold 300.8 billion won and 85.8 billion won, respectively.
Wall Street mixed on Wednesday
Stocks experienced a lack of direction on Wednesday after the sharp pullback seen on Tuesday, with the major averages bouncing back and forth across the unchanged line before closing narrowly mixed.
The Nasdaq dipped slightly by 10.80 points, or 0.1%, to 19,478.87. In contrast, the Dow gained 106.84 points, or 0.3%, to 42,635.20, and the S&P 500 edged up by 9.22 points, or 0.2%, to 5,918.25.
The mixed trading session was driven by uncertainty surrounding the outlook for interest rates, following the release of mixed US jobs data.
On one hand, the ADP report showed private sector job growth slowed more than expected in December, with a rise of only 122,000 jobs versus an anticipated 140,000.
On the other hand, the Labor Department’s report revealed that initial jobless claims unexpectedly fell to their lowest level in almost eleven months, dropping to 201,000 from the prior week’s 211,000.
The Labor Department’s more closely watched monthly jobs report is scheduled for release on Friday, which could provide further insights into the labor market’s strength and influence market sentiment.
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