Asia report: Markets finish mixed after IMF trims global forecast
Markets in Asia ended in a mixed state on Wednesday, as concerns for the health of the global economy grew after the International Monetary Fund took the shears to its growth forecasts.
AUD/USD
$0.6487
19:06 23/04/24
GBP/NZD
NZD2.0957
19:05 23/04/24
Hang Seng
16,828.93
10:21 23/04/24
Nikkei 225
37,552.16
09:44 23/04/24
USD/JPY
¥154.6225
19:06 23/04/24
In Japan, the Nikkei 225 was down 0.53% at 21,687.57, as the yen weakened 0.06% against the dollar to last trade at JPY 111.21.
Looking at the big stocks on the benchmark, automation specialist Fanuc was down 0.05%, fashion group Fast Retailing was ahead 0.69%, and technology conglomerate SoftBank Group was 1.43% higher.
The broader Topix index was 0.69% lower, to close at 1,607.66.
On the mainland, the Shanghai Composite eked out gains of 0.07% to close at 3,241.93, and the smaller, technology-heavy Shenzhen Composite was off 0.21% at 1,779.28.
South Korea’s Kospi was ahead 0.49% at 2,224.39, while the Hang Seng Index in Hong Kong slipped 0.13% to 30,119.56.
Chinese Construction Bank shares were among the leading losers in the special administrative region, falling 0.27% by end-of-play.
Of the blue-chip technology stocks in Seoul, Samsung Electronics managed gains of 0.11%, and chipmaker SK Hynix was 1.03% firmer.
The global economy was at the top of the agenda for much of the Asian session, after the International Monetary Fund once again pruned its global economic growth forecast overnight.
It said it was looking at global growth of 3.3% in 2019, down from its previous expectation for expansion of 3.5%, which itself was already a downgrade.
“Higher trade policy uncertainty and concerns of escalation and retaliation would reduce business investment, disrupt supply chains, and slow productivity growth,” it said in its statement.
“The resulting depressed outlook for corporate profitability could dent financial market sentiment and further dampen growth.”
The IMF said it was still looking at growth of 3.6% in 2020.
Oil prices were higher as the region went to bed, with Brent crude last up 0.45% at $70.93 per barrel, and West Texas Intermediate adding 0.68% to $64.42.
In Australia, the S&P/ASX 200 was virtually flat, rising 0.03% to settle at 6,223.50, as investors in the sunburnt country digested a speech from the central bank’s second-in-command.
Guy Debelle, deputy governor of the Reserve Bank of Australia, said that the bank was doing its level best to figure out the way forward amid conflicting signals from the employment market and GDP data, as well as surveys on business confidence.
“A critical question is which of these is providing the best signal of the global growth impulse? Is it GDP or the labour market,” Debelle asked.
“How can we reconcile the difference?”
Casino operator Crown Resorts plunged 9.11% on the Sydney benchmark, after Las Vegas gambling giant Wynn Resorts ended talks over a possible takeover.
Details of the talks were leaked earlier in the week, giving Crown shares a boost on Tuesday.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.8% at 9,707.96, once again led lower by the retirement property sector amid concerns for demand in that market.
Metlifecare led the Wellington benchmark lower, falling 2.4%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.36% at AUD 1.3988, and the Kiwi advancing 0.17% to NZD 1.4805.