The Asia-Pacific markets experienced a decline on Wednesday following a downturn in the U.S. markets. The S&P 500 and the Nasdaq Composite both ended an eight-day winning streak, with the S&P 500 sliding by 0.2% and the Nasdaq Composite shedding 0.33%.
Japan’s trade data for July revealed a rise in exports by 10.3% and imports by 16.6% year on year. However, these figures were below the expectations of economists, with exports falling short of the 11.4% forecast and imports exceeding the predicted 14.9% growth. This discrepancy led to Japan swinging to a trade deficit of 621.84 billion yen, significantly higher than the expected 330.7 billion yen.
The announcement of a trade deficit in Japan had repercussions on the stock market, with the Nikkei 225 slipping by 0.88% and the Topix falling by 0.6%. Hong Kong’s Hang Seng index also experienced a significant decline of 1.38%, while mainland China’s CSI 300 was 0.57% lower. The technology and consumer cyclical sectors were particularly affected, with e-commerce giant JD.com leading the losses.
The losses in the Asia-Pacific markets were influenced by international factors as well. For instance, the news that U.S. retail giant Walmart was looking to sell its stake in JD.com caused further declines in the market. This potential sale, estimated to be worth $3.74 billion, added to the overall negative sentiment in the markets.
Other Asian markets also showed signs of weakness, with South Korea’s Kospi inching down by 0.23% and the small-cap Kosdaq falling by 1.13%. Australia’s S&P/ASX 200 mirrored the downward trend, decreasing by 0.48%.
Overall, the Asia-Pacific markets faced a challenging day of trading, marked by declines in key indices and sectors. The impact of trade data in Japan, coupled with global developments, contributed to the negative sentiment among investors. As market participants assess the implications of these events, it remains to be seen how the region will respond in the coming days.
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