Most of the major Asia-Pacific indices declined by 1.5%. Chinese indices soared slightly. Shanghai Composite gained 0.11% and Shenzhen Composite added 0.38%. All other regional indicators dropped. Japan's Nikkei 225 lost 0.14%. Hong Kong Hang Seng Index plummeted by 1.48%, the Australian S&P/ASX 200 index lost 1%, and the Korean KOSPI index sank by 1.08%.
As it usually happens, indicators of the Asia-Pacific region followed a drop in major US indicators. At the same time, they fell amid investor concerns about a possible further increase in the base interest rate aimed to combat high inflation. Along with the quotations of US companies, stocks of Chinese companies traded on US exchanges also fell.
The introduction of new quarantine measures in Hong Kong, caused by an increase in the number of cases of COVID-19, worsened the market sentiment. At the same time, Shanghai saw a decline in the number of cases and the lifting of previously imposed restrictions. The Chinese authorities are imposing strict measures to combat the spread of COVID-19. For example, lockdowns, testing of citizens, and isolation for infected and first-level contacts.
Meanwhile, among the Hang Seng Index components, CSPC Pharmaceutical Group, Ltd. dropped by 6.8%, Longfor Group Holdings, Ltd. lost 5.2%, and Anta Sports Products, Ltd. fell by 5.1%.
Alibaba Group Holding, Ltd. dropped by 3.2%, and BYD Co., Ltd. declined by 0.6%.
In Japan, only one company, Fast Retailing, rose by 2.4%.
At the same time, Fujitsu, Ltd. fell by 4.7%, Astellas Pharma Inc. lost 4.1%, M3 Inc. nosedived by 3.4%, and Sony decreased by 3%. SoftBank Group declined by only 0.1%.
The decline of the Korean KOSPI was promoted by the fall of stocks of Samsung Electronics Co. and Hyundai Motor, which lost 1.3% each.
Retail sales in Australia added 0.9% on a monthly basis. The increase in this indicator has been recorded for four months and has already reached record highs.
Exports also rose by 1% to an all-time high of A$50.38 billion or $36.05 billion. Due to difficulties with supplies, imports of goods fell by 0.7% to A$39.88 billion.
Australia's trade balance is in surplus. What's more, it rose to A$10.50 billion, exceeding analysts' forecasts of A$9.3 billion.
Despite this positive news, stocks of the country's largest companies declined. BHP dropped by 0.7%, and Rio Tinto - by 2.1%.
