Asia-Pacific stocks fall as Japan’s exports growth hit eight-month low

Key Points

• Asia-Pacific stocks were lower on Wednesday, as markets in the U.S. were lifted on the back of stronger-than-expected retail sales data.
• Exports in Japan rose 9.4% in October — hitting an eight-month low, Reuters reported
• In earnings, Chinese tech giant Baidu is set to announce its third-quarter results later on Wednesday.
• U.S. stocks, which had been in a rut in recent days after touching records earlier this month, were given a boost by retail sales data.

SINGAPORE — Asia-Pacific stocks mostly declined on Wednesday, as Japan’s exports growth hit an eight-month low. Markets in the U.S. however were lifted on the back of stronger-than-expected retail sales data.

Japan’s Nikkei 225 fell 0.5% after trading in positive territory earlier, while the Topix dropped 0.57%. Exports in Japan rose 9.4% in October, Reuters reported, citing data from the country’s finance ministry. That followed a 13% expansion in the previous month, and was the weakest growth since a drop in February. Auto shipments fell 36.7%.

Shares of Japanese automakers slipped in the morning. Nissan was down nearly 2%, Honda dropped 1.36%, and Mitsubishi Motor fell 2%.

In the region, South Korea’s Kospi was down 0.85%.

Mainland Chinese stocks were struggling for direction in early trade, with the Shanghai Composite sliding 0.2%, while the Shenzhen Component was close to the flatline. Hong Kong’s Hang Seng index dropped 0.56%.

In earnings, Chinese tech giant Baidu is set to announce its third-quarter results later on Wednesday.

In Australia, the S&P/ASX 200 was also lower, and slipped 0.75%. Financial stocks were lower, with the Commonwealth Bank of Australia leading losses as its shares plummeted 8%.

News in the region may boost sentiment, after New Zealand’s Prime Minister announced that the country’s largest city Auckland will reopen its domestic borders from Dec. 15 for fully vaccinated people and those with negative Covid test results, according to a Reuters report.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.46%.

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U.S. stocks, which were in a rut in recent days after touching records earlier this month, were given a boost by retail sales data. The latest retail sales figures for October showed consumers were increasing their spending, with sales jumping 1.7% compared to a 0.8% increase in the prior month.

The Dow Jones Industrial Average added 54.77 points, or 0.15%, to 36,142.22. The S&P 500 gained 0.39% to 4,700.90, and the Nasdaq Composite rose 0.76% to 15,973.86. 

“The strength in the US economic activity, combined with the above‑target inflation, might increase pressure on the [Federal Open Market Committee] to quicken the pace of its tapering of asset purchases,” the Commonwealth Bank of Australia wrote in a note on Wednesday.

TICKER	COMPANY	NAME	PRICE	CHANGE	%CHANGE
.N225	Nikkei 225 Index	*NIKKEI	29674.74	-133.38	-0.45
.HSI	Hang Seng Index	*HSI	25637.41	-76.37	-0.3
.AXJO	S&P/ASX 200	*ASX 200	7365.1	-55.3	-0.75
.SSEC	Shanghai	*SHANGHAI	3529.45	7.67	0.22
.KS11	KOSPI Index	*KOSPI	2967.38	-29.83	-1
.FTFCNBCA	CNBC 100 ASIA IDX	*CNBC 100	10396.44	-74.85	-0.71

Currencies and oil

The US dollar index, which tracks the greenback against a basket of its peers, was at 95.91, jumping from levels above 95.5 earlier.

The Japanese yen traded at 114.81 per dollar, weakening from previous levels of around 114.1. The Australian dollar was at $0.7286, sliding from levels around $0.73 earlier.

US WTI crude dropped 0.8% to $80.11 per barrel in the morning during Asia hours, while Brent crude fell 0.95% to $81.65

Source : CNBC