Asian stock markets are primarily on a downward trend, likely in response to mixed US monthly jobs data and the anticipated release of key US inflation information that could significantly affect interest rates. This follows a recent period of strength in the markets, leading some to take profits.
The Australian market is particularly hard hit, with the S&P/ASX 200 benchmark index falling near the 7,700.00 mark. Negative cues from Wall Street appear to be inspiring this sell-off, with prominent industries such as mining, energy and financial services facing considerable losses. Major companies such as Rio Tinto, Fortescue Metals, BHP Group and Mineral Resources are experiencing drops of 2-3%.
Oil companies such as Beach Energy and Woodside Energy are also taking a hit, with declines of over 2% each. Even tech stocks are not immune, with Xero, Zip and WiseTech Global all losing ground.
Turning to gold miners, the results are mixed; while Gold Road Resources and Evolution Mining are losing ground, Newmont is reporting a slight gain.
Among the 'Big Four' Australian banks, Commonwealth Bank and ANZ Banking are facing losses of over 1%, while Westpac and National Australia Bank are down almost 2%.
Meanwhile, the Japanese stock market is also suffering, with the Nikkei 225 Index recording a significant slump. Major contributors to this fall include heavyweight SoftBank Group and retail giant Uniqlo. In the tech sector, losses are being led by Screen Holdings, Advantest and Tokyo Electron.
Japan's banking sector isn't faring much better, with Sumitomo Mitsui Financial, Mizuho Financial, and Mitsubishi UFJ Financial all down by over 3%. Major exporters like Canon and Sony also report losses.
In terms of economic news, Japan's GDP grew a seasonally adjusted 0.1% in Q4 of 2023, falling short of the anticipated 0.3% growth. However, on an annualized basis, there was a 0.4% increase, defying expectations of a contraction. M2 money stock rose by 2.5% in February, exceeding a forecasted increase of 2.4%.The M3 money supply experienced an annual rise of 1.8 percent for the second consecutive month, reaching a high of 1,593.2 trillion yen. The L money stock also noted an increase of 2.3 percent year-on-year which amounted to 2,125.5 trillion yen. However, the rise in the L money supply slowed down compared to its previous month's gain of 2.5 percent.
In the foreign exchange market, the U.S. dollar found itself trading at a comparatively higher range of 146 yen on Monday of that week.
Other activities in the Asian markets revealed a decrease between 0.2 to 0.6 percent each in New Zealand, Singapore, South Korea, and Taiwan, while Hong Kong and Malaysia experienced increases of 1.1, and 0.4 percent respectively. During this period, China's market performance remained relatively stable. Meanwhile, Indonesia's market was closed in celebration of the Hindu Saka New Year.
Wall Street, on the other hand, reported a mostly positive performance in early trading on Friday. However, it turned towards a significant decline during the day. After reaching their peak, the primary averages experienced a considerable fall, with Nasdaq, the tech-heavy index, plummeting significantly.
The primary averages also attempted a recovery later in the session but ended the day firmly in the negative. The Nasdaq fell by 188.26 points or 1.2 percent to 16,085.11, and at the same time, the S&P 500 decreased by 33.67 points or 0.7 percent to 5,123.69, while the Dow Jones fell by 68.66 points or 0.2 percent to 38,722.69.
In Europe, market performance was varied. While France's CAC 40 Index saw a marginal increase of 0.2 percent, Germany's DAX Index and the U.K.'s FTSE 100 Index both fell by 0.2 and 0.4 percent respectively.
Crude oil prices also declined on Friday due to uncertainties regarding the demand outlook, especially from China. This came after data revealed a decrease in China's oil imports during the first two months of the year. West Texas Intermediate Crude oil futures for April fell by $0.92 or 1.2 percent to $78.01 a barrel. For that week, WTI crude futures dropped 2.5 percent overall.
