On Thursday Major markets in Asia have been down as investors continued to digest some weak manufacturing data out of the US, together with the country’s newly announced plans to force tariffs on $7.5 billion worth of European exports till October 18.
Japan’s Nikkei (N225) and Australia’s S&P/ASX 200 dropped 2% and 1.9%, respectively, in early trading.
Asian markets now must deal with the damaging effects of several trade disputes, mentioned Stephen Innes, a market strategist for the Asia Pacific at Axi Trader. Spats between the US and China, South Korea and Japan, and the US and the European Union are all creating causes for concern.
Hong Kong’s Hang Seng Index (HSI) can also be weak, based on Halley. The index, which was down 0.4% in early trading, is grappling with a set of just-released retail sales figures that have been abysmal.
After the market closed on Wednesday, the city’s government reported that retail sales value fell 23% in August compared to a year earlier. Total retail sales volume in August fell by greater than 25%, accounting for value changes, from a year prior.
The year-on-year decline is the steepest for a single month on the report, based on a government spokesperson. The plunge reflected “severe disruptions” to tourism and consumer activity caused by escalating demonstrations.
Protesters clashed with police and residents throughout several districts on Tuesday, the 70th anniversary of the founding of the People’s Republic of China. The protests have lasted for months.
On Thursday, major retail groups and shopping mall owners have been among the hardest hit on the Hang Seng. Sun Hung Kai Properties, a primary shopping center owner and property developer, declined 1.1% in trading. Rival CK Hutchison additionally dropped 1.1%. Each has been down more than 2% earlier within the day.
Chinese markets, together with the Shanghai Composite (SHCOMP), remained closed Thursday for the holiday week.
On Wednesday South Korea’s Kospi (KOSPI) was additionally closed on Thursday for a public holiday. It closed down nearly 2%.