Stock indices of the largest states of the Asia-Pacific region are falling on Wednesday following the similar dynamics of the US stock market a day earlier.
Traders’ attention is focused on the meetings of the Central Bank of several large countries at once, which will be held this week. The results of the meeting of the leadership of the Federal Reserve System will be especially important.
Most experts believe that the US Central Bank will raise the base interest rate by 75 basis points (bp) following the meeting, which will end on September 21. However, some analysts consider a 100 bp increase possible at once. In addition, financial market participants will evaluate the forecasts of the Fed regarding the future level of the rate and the economy.
The Asian Development Bank (ADB) downgraded its economic growth forecast for emerging Asia for 2022-2023 on Wednesday. amid rising global risks. Now GDP is expected to increase by 4.3% this year compared to 5.2% expected in April, next year – by 4.9% against 5.3% earlier.
“Emerging Asia continues to recover, but the risks are high,” said ADB chief economist Albert Park. to financial instability.
He also noted that the Chinese economy is facing problems due to repeated lockdowns and a weak real estate sector.
The Chinese Shanghai Composite index fell by 0.1% by 08:25 Moscow time, the Hong Kong Hang Seng lost 1.3%. Both indicators are at their lows for several months.
Among the top losers on the Hong Kong Stock Exchange are shares of solar panel maker Xinyi Solar Holdings Ltd. (HK:0968) (-7.6%), semiconductor manufacturer Sunny Optical Technology Group Co. (-5.8%), automakers Geely (-3.5%) and BYD (-2.3%), game developer Netease Inc. (-3.3%), online retailers Alibaba (NYSE:BABA) Group (-3.3%) and JD.com (NASDAQ:JD) (-2.4%).
The value of the Japanese Nikkei 225 index decreased by 1.2% by 08:24 Moscow time.
Shares of polymer producer Unitika were the drop leaders, shedding 6.5%. The price of securities of investment and technology SoftBank Group (TYO:9984) (-1.1%), the manufacturer of set-top boxes Nintendo (-1.1%), automotive Toyota Motor (TYO:7203) (-2.3%) and Nissan are also falling. Motor (TYO:7201) (-2.9%).
The South Korean index Kospi by 08:21 Moscow time fell by 0.9%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. (KS:005930) fell 0.9%, automaker Hyundai Motor (KS:005380) – 1.3%.
Leading the pack are auto parts makers Hwacheon Machinery Co., which soared almost 30% after falling by a similar amount in previous trading.
The Australian S&P/ASX 200 has lost 1.6% since the market opened.
The market value of the world’s largest mining companies BHP and Rio Tinto (LON:RIO) decreased by 3% and 3.2%, respectively. Oil companies Woodside Energy and Santos (ASX:STO) lost 1.9% and 1%.