Asian stocks declined on Wednesday, driven by a strengthening yen that led to further unwinding of the carry trade, while a significant drop in JD.com shares pulled down Hong Kong’s Hang Seng index.
Regional markets followed the lead of Wall Street, which saw its eight-day rebound rally come to a halt amid caution ahead of a speech by Federal Reserve Chair Jerome Powell later this week. U.S. stock index futures showed little movement during Asian trading hours.
Hang Seng Declines, JD.com Drops on Walmart Stake Sale Report
Hong Kong’s Hang Seng index was among the weakest performers in Asia on Wednesday, slipping 0.7%. JD.com (NASDAQ) (HK:9618) was the largest drag on the index, plummeting around 11% after Bloomberg reported that Walmart Inc. (NYSE) plans to sell its stake in the e-commerce giant for $3.74 billion.
JD Health International Inc. (HK:6618), a subsidiary of JD.com, also dropped nearly 4%, while rival Alibaba Group (NYSE) (HK:9988) saw a 2% decline.
The sharp losses on Wednesday reversed much of JD.com’s recent gains, which had been bolstered by stronger-than-expected earnings for the June quarter. However, the company now faces increased challenges from slowing demand in China, its largest market.
The Hang Seng index also neared its lowest point in over three months, a level last reached earlier in August. Concerns over China’s slowing economic growth have negatively impacted sentiment towards local markets.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both fell by about 0.2% on Wednesday, remaining close to recent six-month lows.
Nikkei Slips as Yen Strengthens
Japan’s Nikkei 225 and TOPIX indexes dropped 0.8% and 0.7%, respectively, as a stronger yen put pressure on the market.
The yen’s sharp appreciation from late July into early August, which saw the USD/JPY pair fall to as low as 141 yen, largely reversed gains made from the yen carry trade.
Although the yen had weakened over the past week, it strengthened sharply on Monday, with the USD/JPY pair hovering around 145 yen by Wednesday.
The yen’s strength weighed heavily on Japan’s export-driven stocks, which had been a major factor in the Nikkei’s rally over the past two years.
Jefferies noted in a recent report that yen appreciation could weaken the earnings outlook for Japanese markets. However, the brokerage maintained an overweight position on Japanese stocks, particularly those with strong domestic demand exposure.
Data released on Wednesday showed that Japan’s exports grew less than expected in July, while imports accelerated due to improving local demand.
Broader Asian markets also drifted lower, mirroring Wall Street’s overnight weakness. Australia’s ASX 200 index fell 0.4%, and South Korea’s KOSPI lost 0.2%.
Futures for India’s Nifty 50 index indicated a slightly weaker opening, although the index remained close to recent highs.
.
#everyday_information #forex #option #Binary_Option #trading #trader #goldstocks #forextrader #fx_trade_time #fxttime #USDollar #euro #JPY #GBP #chfcurrency
#dubai #UAENews #ksasaudiarabia #Syrian #iraq #kuwait #jordan #morocco #Libya #tunisia #algerian #Egypt #qatar #lebanon
#كل_يوم_معلومه #فوركس #خيارات_ثنائيه #تداول_عملات #بورصه #ذهب #فوركس_تريد_تايم #اف_اكس_تريد_تايم #دولار #يورو
#دبي #امارات #السعوديه #سوريا #العراق #الكويت #الاردن #المغرب #ليبيا #تونس #الجزائر #مصر #قطر #لبنان
.
www.fxttime.com/trade