Stock indices of the largest states of the Asia-Pacific region on Wednesday showed a decrease following the similar dynamics of the US stock market a day earlier.
Traders’ attention is focused on the meetings of the Central Bank of several large countries at once, which will be held this week. The results of the meeting of the leadership of the US Federal Reserve System will be especially important.
Most experts believe that the US Central Bank will raise the base interest rate by 75 basis points (bp) following the meeting, which will end on September 21. However, some analysts consider a 100 bp increase possible at once. In addition, financial market participants will evaluate the forecasts of the Fed regarding the future level of the rate and the economy.
In addition, geopolitical tensions in the world and the expected slowdown in global economic growth have a negative impact on investor sentiment.
The Asian Development Bank (ADB) downgraded its economic growth forecast for emerging Asia for 2022-2023 on Wednesday. amid rising global risks. Now GDP is expected to increase by 4.3% this year compared to 5.2% expected in April, next year – by 4.9% against 5.3% earlier.
“Emerging Asia continues to recover, but the risks are high,” said ADB chief economist Albert Park. to financial instability.
He also noted that the Chinese economy is facing problems due to repeated lockdowns and a weak real estate sector. The estimate of China’s GDP growth for this year was downgraded by ADB analysts to 3.3% from 5% forecast in April.
China’s Shanghai Composite index closed down 0.2%, while Hong Kong’s Hang Seng lost 1.8%. Both indicators are at their four-month lows.
Shares of solar panel maker Xinyi Solar Holdings Ltd were among the top decliners on the Hong Kong Stock Exchange. (-8%), which produces semiconductors Sunny Optical Technology Group Co. (-10.5%), automakers Geely (-4.6%) and BYD (-2.2%), game developer Netease Inc. (SPB: NTES) (-3.6%), online retailers Alibaba (SPB: BABA) (-3.7%) and JD.com (-2.9%).
The value of the Japanese Nikkei 225 index for the day decreased by 1.4%.
Shares of polymer producer Unitika led the fall, losing 7.5%. The price of securities of the investment and technology SoftBank Group (-1.2%), the manufacturer of prefixes Nintendo (-1.2%), automotive Toyota Motor (-2.4%) and Nissan Motor (-3.1%) also decreased.
Shikoku Electric Power’s share price fell 5.2% after the power company announced it would not pay dividends for the first half of the year due to uncertainty about future fuel prices.
South Korea’s Kospi fell 0.9% on Wednesday.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. fell by 0.9%, automaker Hyundai Motor – by 0.8%.
Auto parts makers Hwacheon Machinery Co. led the pack, up nearly 30% after falling by a similar amount in previous trading.
The Australian S&P/ASX 200 lost 1.6%.
The market value of the world’s largest mining companies BHP and Rio Tinto decreased by 3.1% and 3.7%, respectively. Iron ore prices fell to a nine-month low due to an expected contraction in steel demand.
Oil companies Woodside Energy and Santos lost 1.9% and 1%.
