Pressure on Asian markets is exerted by growing fears that the rapid tightening of monetary policy by the world’s largest central banks, trying to contain inflation, will provoke a recession in the global economy.
“The downward momentum we saw on Wall Street late last week has spilled over into Asia,” said Jun Rong Ying, an analyst at IG in Singapore, quoted by Market Watch.
The strengthening of the US dollar also has a negative impact on Asian stock markets, the expert says.
Japan’s Nikkei 225 lost 2.6% in trading on Monday.
The Purchasing Managers Index (PMI) in the industrial sector of Japan, calculated by Jibun Bank, fell in September to the lowest since January 2021 51 points compared to 51.5 points in August, according to preliminary data.
At the same time, the services PMI rose to a three-month high of 51.9 from 49.5 in August, while the composite PMI rose to its highest since June of 50.9 (49.4 in August).
The decline leaders among the components of the Nikkei 225 are shares of SoftBank Group Corp. (-5.4%), Mitsubishi UFJ Financial (-4.9%), Honda Motor (-5%), Sony Group Corp. (-4.3%), Toyota Motor (-3%).
Chinese indexes Shanghai Composite and Shenzhen Composite lost 0.1% and 0.7% respectively.
Last week, experts from Nomura and Goldman Sachs downgraded their forecasts for the Chinese economy for 2023 due to the tough policy of the Chinese authorities in containing the spread of COVID-19. This week, China’s National Bureau of Statistics is to release its September PMI, which is expected to give an indication of how fast the Chinese economy is recovering.
Shares of Zijin Mining Group lost 6.8% in trading on Monday, PetroChina – 3.7%, China Coal – 3.2%. At the same time, alcohol maker Kweichow Moutai rose 2.5% and Great Wall Motor rose 1.4%.
The Hong Kong Hang Seng is losing 0.4%. CNOOC shares fell 4.2%, CITIC – 5.7%, Meituan – rose 4.9%, Tencent – jumped in price by 4.3%.
From Monday, Hong Kong will end the quarantine for arrivals in the country, introduced for the first time 2.5 years ago.
The Australian stock index S & P / ASX 200 fell during trading by 1.3%. BHP Group fell 3%, Rio Tinto – 3.4%, Fortescue Metals – 2.8%.
South Korean KOSPI loses 3.8%.
