Asia report: Markets finish mixed after earlier sell-off

(Sharecast News) - Markets across the Asia-Pacific region closed in a varied state on Wednesday, in the wake of Tuesday's widespread decline. Traders were busy digesting trade data releases from both Japan and Singapore during the session.

"Global markets continue navigating through some volatility, especially with the anticipation of the Federal Reserve's actions regarding interest rates," said TickMill market analyst Patrick Munnelly.

"The fluctuation in Asian currencies and the recovery of the MSCI Asia Pacific Index suggest a mixed sentiment among investors.

"The decline in the dollar after its recent surge is noteworthy, particularly in its impact on emerging-market currencies."

Munnelly said the varied performance of Asian stocks, with Japan facing losses and mainland China seeing gains, reflected regional differences in market dynamics.

"The efforts by the Chinese securities regulator to address concerns over new stock exchange rules likely contributed to the recovery of Chinese stocks.

"The stability of Treasury rates, despite reaching new highs for the year, indicates a cautious approach among investors following Federal Reserve chairman [Jerome] Powell's remarks regarding the timeline for achieving the central bank's inflation target.

"The persistence of inflationary pressures, as indicated by key inflation indicators surpassing estimates for the third consecutive month, underscores the challenges facing central banks in managing monetary policy in a post-pandemic economic environment."

Markets in a mixed state, with Japan leading the losses

In Japan, the Nikkei 225 index fell 1.32%, settling at 37,961.80, while the Topix index also recorded a decline of 1.26%, closing at 2,663.15.

Leading the declines on Tokyo's benchmark was Lasertec, down 7.85%, LY Corporation dropping 5.32%, and Chubu Electric Power, off 4.94%.

Conversely, Chinese markets saw a positive turn, with the Shanghai Composite rising by 2.14% to reach 3,071.38, and the Shenzhen Component jumping 2.48% to settle at 9,381.77.

The top gainers in Shanghai included Guangzhou Fangbang Electronics, marking an impressive increase of 15.16%, and Hunan Corun New Energy, rising by 10.14%.

Meanwhile, in Hong Kong, the Hang Seng Index displayed marginal growth, edging up by 0.02% to reach 16,251.84.

WuXi AppTec saw a notable increase of 4.88%, followed by Li Auto rising by 3.98%, and China Resources Power gaining 2.71%.

South Korea's Kospi index, however, fell 0.98%, closing at 2,584.18.

Top decliners in Seoul included Hyundai Heavy Industries, seeing a decrease of 5.86%, and Doosan Bobcat, falling by 5.45%.

In Australia, the S&P/ASX 200 index dipped slightly by 0.09%, closing at 7,605.60, led lower by Boral, dropping by 4.51%, and Boss Energy, declining by 3.43%.

New Zealand's S&P/NZX 50 index displayed a positive trend, rising by 0.6% to reach 11,875.35, with Eroad increasing 3.53% and A2 Milk Company rising 2.8%.

On the currency front, the dollar was last down 0.1% on the yen, trading at JPY 154.57.

The greenback also experienced a decrease against the Aussie, falling 0.35% to AUD 1.5567, while it retreated 0.43% from the Kiwi to change hands at NZD 1.6930.

In oil markets, Brent crude futures were last down 0.67% on ICE at $89.42 per barrel, while the NYMEX quote for West Texas Intermediate declined 0.73% to $84.74.

Export growth moderates in Japan, domestic exports plummet in Singapore

In economic news, Japan's export growth moderated slightly in March, rising by 7.3% year-on-year, compared to the 7.8% gain seen in February.

Despite the slowdown, the figure surpassed economists' expectations of a 7% increase, according to Reuters polling.

Conversely, imports to Japan declined 4.9% compared to the same period last year, contrasting with the 0.5% gain seen in February.

As a result, Japan's trade surplus expanded to JPY 366.5bn, topping the Reuters forecast of 299.9 billion yen.

Business sentiment in Japan meanwhile appeared to have dimmed, particularly among large firms.

The Reuters Tankan survey for April revealed a decline in optimism, with the sentiment index for manufacturers dropping to +9 from the previous month's +10.

Similarly, the services sector index fell to +25 from +32, despite some positive gains reported by retailers.

In Singapore, non-oil domestic exports plunged 20.7% in March.

The steep decline caught economists off guard, far surpassing the expected 7% downturn as polled by Reuters.

Reporting by Josh White for Sharecast.com.