Stock indices of the countries of the Asia-Pacific region fall at the auction on Thursday, following the dynamics of the US stock market.
Exchanges in Japan are closed due to the celebration of the Day of Culture in the country.
Investors evaluate the results of the November meeting of the US Federal Reserve System. The American Central Bank expectedly raised the interest rate by 75 basis points, now its range is 3.75-4% per annum. It was increased by this amount following the results of the fourth meeting in a row. The rate is now at its highest level since January 2008.
At the same time, the Fed pointed to the possibility of slowing down the pace of rate hikes in the future. Fed Chairman Jerome Powell said at a press conference after the meeting that the issue would likely be discussed at the December meeting or early next year.
The Chinese Shanghai Composite index fell by 0.6% by 7:05 a.m. The Hong Kong Hang Seng lost 2.8%.
PC maker Lenovo Group is down 0.8%. The company in the second financial quarter increased net profit by 6%, but reduced revenue by 4%.
Papers of pharmaceutical CanSino Biologics Inc. cheaper by 26.5%. The company said it does not expect strong growth in profits from the sale of China’s first inhaled COVID-19 vaccine due to strong domestic competition and declining global demand.
Shares of other Chinese pharmaceutical companies also fall on this news. Stock quotes CSPC Pharmaceutical Group Ltd. lose 10.1% and lead the decline as part of Hang Seng, Sino Biopharmaceutical (SPB: 1177) Ltd. – decrease by 5.9%.
In addition, the securities of the video game developer Netease Inc. are actively losing in price on the Hong Kong Stock Exchange. (SPB: NTES) (-6.7%), casino operator Sands China (SPB: 1928) Ltd. (-6.1%) and online retailer Alibaba Group Holding (SPB: BABA) Ltd. (-6%).
China’s Purchasing Managers’ Index (PMI) fell to 48.3 in October from 48.5 in September, according to data compiled by Caixin Media and S&P Global. The indicator value above 50 points indicates an increase in business activity, below – its decline. The October indicator is below 50 points for the second month in a row and has updated the minimum since May.
Analysts note that the continued strict coronavirus restrictions in China contribute to the decrease in activity.
The South Korean index Kospi fell by 0.12% by 7:25 a.m.
Quotes of securities of one of the world’s largest manufacturers of chips and electronics Samsung Electronics Co. decrease by 0.5%, the cost of automaker Hyundai Motor decreased by 2.1%.
The Australian S&P/ASX 200 fell 1.8% on Thursday.
Share prices of the world’s largest mining companies BHP and Rio Tinto lost 3.1% and 2.3%, respectively.
