Asia report: Markets fall as Korea tensions heat up
Markets in Asia finished lower across the board on Thursday, following a technology-led sell-off on Wall Street overnight, and as tensions between the Koreas flared up.
In Japan, the Nikkei 225 was down 1.11% at 23,087.82, as the yen weakened 0.02% against the dollar to last trade at JPY 105.41.
Of the major components on the benchmark index, robotics specialist Fanuc was down 1.32% and Uniqlo owner Fast Retailing lost 0.77%, while technology giant SoftBank Group took its cues from US markets overnight to sing 4.52%.
The broader Topix index lost 1.08% by the end of trading in Tokyo, settling at 1,626.44.
On the mainland, the Shanghai Composite was off 1.72% at 3,223,18, and the smaller, technology-heavy Shenzhen Composite lost 2.46% at 2,148.08.
South Korea’s Kospi was down 2.59% at 2,272.70, while the Hang Seng Index in Hong Kong was 1.82% lower at 23,311.07.
It was a mixed finish for the blue-chip technology stocks in Seoul, with Samsung Electronics down 1.37%, while chipmaker SK Hynix rose 0.84%.
The moves in Korea came after the South Korean defence ministry said a missing official from the South had been shot dead by the North earlier in the week.
According to local news agency Yonhap, it was the first time a South Korean civilian has been killed in North Korea since 2008.
The rise in tensions had a positive effect on defence stocks on the peninsula, however, with Victek rocketing 25.13%.
In Hong Kong, technology plays followed their US counterparts lower, with Tencent down 1.75% and Xiaomi off 4.84%.
“A more downbeat assessment of the US economy from Fed chairman Jay Powell, in the absence of new fiscal measures from the US Congress, in his latest testimony session, saw US stocks roll over into negative yesterday evening, after initially opening higher, with the Nasdaq once again helping to drive sentiment, falling in excess of 3%,” said CMC Markets chief market analyst Michael Hewson.
“Asia markets also slid lower, though increased tension between North and South Korea over the killing of a South Korean official in North Korea hasn’t helped.”
Oil prices were mixed at the end of the Asian day, with Brent crude last up 0.07% at $41.80 per barrel, while West Texas Intermediate slipped 0.03% to $39.92.
In Australia, the S&P/ASX 200 was off 0.81% at 5,875.90, while across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.13% to close at 11,689.89.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.38% at AUD 1.4194, and the Kiwi retreating 0.35% to NZD 1.5325.