Asian shares decline after Wall Street rally fizzles

A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Jan. 11, 2018. Asian stock markets were lower on Thursday after Wall Street posted its first loss this year. Reports that China may slow its purchase of U.S. government bonds weighed on investor sentiment. (AP Photo/Ahn Young-joon)
A currency trader talks on the phone at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Jan. 11, 2018. Asian stock markets were lower on Thursday after Wall Street posted its first loss this year. Reports that China may slow its purchase of U.S. government bonds weighed on investor sentiment. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Jan. 11, 2018. Asian stock markets were lower on Thursday after Wall Street posted its first loss this year. Reports that China may slow its purchase of U.S. government bonds weighed on investor sentiment. (AP Photo/Ahn Young-joon)

SEOUL, South Korea — Asian stock markets were lower on Thursday after Wall Street posted its first loss this year. Reports that China may slow its purchases of U.S. government bonds weighed on investor sentiment.

KEEPING SCORE: Japan's Nikkei 225 fell 0.3 percent to 23,707.31 and South Korea's Kospi retreated 0.6 percent to 2,485.75. Hong Kong's Hang Seng index dipped 0.1 percent to 31,032.51 while China's Shanghai Composite Index fell 0.5 percent to 3,405.93. Australia's S&P/ASX 200 slumped 0.6 percent to 6,057.10. Most stock markets in Southeast Asia were weaker.

CHINA: A report from Bloomberg News said China is considering slowing or halting its purchases of U.S. Treasurys, which helped push yields higher. The report triggered sell-offs of U.S. government bonds and the yield on the 10-year Treasury reached its highest level since March at one point before pulling back.

ANLAYST'S TAKE: "Justifiably, Beijing's biggest worry is that the value of its U.S. bond holdings will be eroded substantially by rising inflation and supply," Mizuho Bank Ltd. said in a daily commentary. "Doubts about (U.S. bonds) allure should not be overblown as threat of imminent dumping."

JAPAN: Bank of Japan unexpectedly cut its purchases of long-dated Japanese government bonds, sending the Japanese yen higher. Bank of America Merrill Lynch said in a report that the market reaction was "a bit excessive" and perhaps more extreme than expected, highlighting the importance of communication going forward.

WALL STREET: U.S. stocks finished lower on Wednesday. The Standard & Poor's 500 index fell 0.1 percent to 2,748.23. The Dow Jones industrial average dropped 0.1 percent to 25,369.13 while the Nasdaq composite fell 0.1 percent to 7,153.57. The Russell 2000 index of small-cap stocks slipped 0.30 points, or less than 0.1 percent, to 1,559.80.

CURRENCIES: The dollar rose to 111.73 Japanese yen from 111.43 yen. The euro was flat at $1.1948.

OIL: Benchmark U.S. crude lost 3 cents to $63.54 per barrel on the New York Mercantile Exchange. The contract added 61 cents to settle at $63.57 per barrel on Wednesday. Brent crude, the international standard, fell 10 cents to $69.10 per barrel in London. It gained 38 cents to $69.20 a barrel on Wednesday.

People also read these

Global stocks turn higher on strong economic...

Feb 21, 2017

Global stock markets are mostly higher after surveys pointed to robust economic growth in Europe...

Global markets cautious ahead of Trump speech

Feb 27, 2017

World stock markets were subdued Monday as investors looked ahead to U.S. President Donald Trump's...

Asian stocks mixed as investors weigh US data,...

Mar 29, 2017

Asian stock are uneven as investors weighed strong U.S. economic reports against uncertainty as...

Asian stocks mostly lower as Trump uncertainty...

May 12, 2017

Asian shares mostly lower as US political uncertainty, poor retailer earnings weigh on investors

Global stocks higher after Wall Street spurt

May 16, 2017

Global stock markets have mostly risen despite weaker Chinese economic data after Wall Street's...

About Us

Biz Daily Online gives a complete understanding of the world of business to you. Get today’s business news and learn about the trends that are affecting every business here.

Contact us: sales[at]bizdailyonline.com

Subscribe Now!