Asian stock markets saw a predominantly downward trend on Wednesday, taking cues from the negative performances on Wall Street overnight. A notable dip in commodity prices led to substantial sell-offs in the energy and materials sectors. Additionally, investors were cautious, opting to capitalize on the recent market rally post-U.S. elections and choosing to tread carefully ahead of the anticipated U.S. consumer price inflation report scheduled later that day. On Tuesday, Asian markets also ended mostly lower.
In Australia, the stock market saw significant declines for the third consecutive session on Wednesday. The benchmark S&P/ASX 200 Index dropped sharply, falling below 8,200 due to weakness across most sectors, particularly mining and energy stocks, given the subdued commodity prices. The index fell 78.70 points or 0.95 percent to close at 8,176.90, after a low of 8,139.10 earlier in the day. The All Ordinaries Index was down 79.70 points or 0.94 percent to 8,435.50. On Tuesday, Australian stocks also closed slightly lower.
Among major miners, BHP Group saw a loss of nearly 2 percent and Rio Tinto dropped by over 3 percent, while Fortescue Metals remained flat. Mineral Resources tumbled almost 7 percent upon announcing a suspension of operations at the Bald Hill site in Western Australia until spodumene prices recover.
Oil stocks were generally weaker. Woodside Energy and Beach Energy each declined by more than 1 percent, while Santos and Origin Energy edged down between 0.3 and 0.5 percent. In the technology sector, Zip lost almost 1 percent, and Appen fell by nearly 4 percent, although Afterpay's parent company Block gained almost 4 percent. WiseTech Global and Xero rose slightly by 0.1 to 0.5 percent.
The major banks were also hit, with Commonwealth Bank and Westpac down nearly 2 percent each. National Australia Bank saw a decline of over 2 percent, and ANZ Banking dropped almost 5 percent.
Gold miners also faced challenges; Evolution Mining and Newmont each fell by 1.5 percent, Gold Road Resources was down nearly 1 percent, Northern Star Resources edged down 0.4 percent, and Resolute Mining decreased by more than 3 percent.
Meanwhile, Light & Wonder shares declined over 6 percent despite a 15 percent increase in gaming revenue for the three months ending September, as earnings per share failed to meet analysts' estimates.
Shares in James Hardie surged nearly 6 percent after the firm reaffirmed the lower end of its volume guidance, despite a 23 percent drop in net profit. The company cited a "challenging demand environment" in Asia and Europe as the cause.
Selfwealth shares skyrocketed by 72 percent after receiving a buyout offer from Bell Financial Group at 22¢ per share, almost double the previous closing price.
On the macroeconomic front, the Australian Bureau of Statistics reported a 0.8 percent quarterly increase in the wage price index for the third quarter of 2024, in line with the previous quarter but below the expected 0.9 percent rise. Both private and public sectors saw a 0.8 percent increase. Annually, wage prices climbed 3.5 percent, short of the forecasted 3.6 percent and below the 4.1 percent recorded in the second quarter.
In currency trading, the Australian dollar was valued at $0.653 on Wednesday.
Over in Japan, the stock market also experienced significant losses, extending from the previous session's downturn and reflecting the negative Wall Street vibes. The Nikkei 225 dropped sharply below the 39,000 mark, with sectors led by major indexes and automakers encountering significant pressure. By the end of the morning session, the Nikkei 225 Index had declined to 38,953.44, marking a decrease of 422.65 points or 1.07 percent, after reaching a low of 38,814.07. Japanese stocks had closed slightly lower on Tuesday as well.
Among the index giants, SoftBank Group edged down by 0.4 percent, and Fast Retailing, operator of Uniqlo, fell by 1.5 percent. In the automotive sector, Honda lost 3.5 percent, and Toyota decreased by 1.5 percent.
In the technology sector, Advantest fell by 0.4 percent, though Tokyo Electron gained almost 3 percent, and Screen Holdings rose by more than 1 percent.
In banking, Sumitomo Mitsui Financial edged down by 0.1 percent, Mitsubishi UFJ Financial dropped almost 1 percent, while Mizuho Financial managed a gain of nearly 1 percent.
Among major exporters, Sony lost over 1 percent, and Canon fell almost 1 percent. Meanwhile, Mitsubishi Electric edged up 0.5 percent, and Panasonic increased by more than 1 percent.Several prominent companies have faced significant losses in the market. NEXON saw a sharp decline, dropping nearly 14%, while Sumitomo Metal Mining fell by about 8%. Daiichi Sankyo and JGC Holdings each experienced a decrease of more than 5%. Additionally, Japan Exchange dipped by over 4%, with Hitachi, Recruit Holdings, Sumitomo Realty & Development, Tokyo Tatemono, and DeNA each losing more than 3%. Terumo, Konami Group, Yamaha Motor, and Otsuka Holdings also saw declines of nearly 3%.
In contrast, Sharp surged dramatically, increasing by nearly 13%, while Resona Holdings rose by almost 4%. Marui Group and Furukawa Electric both saw gains of approximately 3%.
Turning to economic developments, the Bank of Japan reported that producer prices in Japan increased by 0.2% in October compared to the previous month. This figure surpassed expectations of a stable result and followed an upwardly revised 0.3% increase in September. Annually, producer prices climbed 3.4%, exceeding forecasts of 2.9% and up from the revised figure of 3.1% the previous month. The bank noted that export prices remained unchanged month-on-month but rose by 0.6% annually, while import prices decreased by 0.2% from the previous month and dropped 2.1% from a year earlier.
In currency trading, the U.S. dollar is hovering in the higher 154 yen range as of Wednesday.
Elsewhere in Asia, South Korea's markets have declined by 1.4%, whereas New Zealand, China, Hong Kong, and Malaysia posted gains ranging from 0.2% to 1.0%. Singapore, Indonesia, and Taiwan also saw increases between 0.1% and 0.4%.
On Wall Street, stocks retreated on Tuesday following the previous week's election-fueled gains. After fluctuating throughout the session, the major indexes closed in negative territory. The Dow Jones Industrial Average recorded a significant drop of 382.15 points or 0.9%, settling at 43,910.98. The S&P 500 declined by 17.36 points or 0.3% to close at 5,983.99, and the Nasdaq Composite slipped by 17.36 points or 0.1% to 19,281.40.
European markets also experienced notable downward movements. The French CAC 40 Index fell by 2.7%, the German DAX Index decreased by 2.1%, and the UK's FTSE 100 Index slid by 1.2%.
In the commodities market, crude oil prices saw a modest uptick on Tuesday, despite OPEC's revised forecast lowering global oil demand for 2025. The strength of the U.S. dollar also contributed to the pricing pressure. West Texas Intermediate crude oil futures for December rose by $0.08, settling at $68.12 per barrel.
