The exception is Hong Kong’s Hang Seng, which fell more than 1.5% by 8:31 AM ET.
The decline leaders are shares of automotive companies Geely and BYD, which lost 6.3% and 5.3%, respectively. On Friday it became known that the investment company of American billionaire Warren Buffett Berkshire Hathaway continued to reduce its stake in BYD and sold the second stake in the automaker in two weeks.
In addition, papers of online retailers JD.com Inc. are getting cheaper. (-3.4%) and Alibaba (-2.7%), consumer electronics manufacturer Xiaomi Corp. (-2.9%), Internet giant Tencent Holdings Ltd. (-3.1%).
Following the increase in oil prices, stock prices of representatives of this industry are growing: PetroChina Co. (+1.9%), China Petroleum & Chemical Corp. (+1.7%) and CNOOC (+1.5%).
The Chinese authorities are introducing restrictive measures and continue mass testing for COVID-19 among more than 20 million residents of the city of Chengdu, the administrative center of Sichuan province. It is the sixth most populous city in the country. In addition, measures to restrict movement were taken in Shenzhen.
Business activity in China’s industrial sector rose for the third month in a row in August, according to the Purchasing Managers’ Index (PMI) calculated by Caixin Media and S&P Global.
While the PMI slipped to 55 from a 15-month high of 55.5 in July, it remained above the 50-point mark, which indicates an increase in activity in the sector. At the same time, analysts expected the index to fall to an average of 51 points, according to Trading Economics.
Consolidated PMI last month decreased to 53 points from 54 points in July.
The Chinese Shanghai Composite index is almost at the level of previous trading, as well as the Japanese Nikkei 225.
The price of securities of the Japanese oil company Inpex is growing by 0.7%, non-ferrous metals producer Sumitomo Metal Mining Co. – by 1.9%, investment technology company Softbank Group – by 0.15%.
Asia’s largest clothing retailer Fast Retailing is down 1%, automaker Nissan Motor Co. – by 1.6%.
The South Korean index Kospi by 08:20 Moscow time fell by 0.3%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. fell by 1%, while automaker Hyundai Motor – rose by 1.8%.
The Australian indicator S&P/ASX 200 added 0.2% since the market opened.
The market value of the world’s largest mining companies BHP and Rio Tinto rose by 2.6% and 1.8%, respectively.
Retail sales in Australia rose 1.3% month-on-month in July to a record A$34.67 billion, final data show. This is the biggest increase since March.
The composite index of the largest companies in the Stoxx Europe 600 region rose by 0.87% by 11:43 a.m. to 411.21 points.
The German DAX index gained 1.56%, the French CAC 40 – 0.9%, the British FTSE 100 – 0.84%. The Italian FTSE MIB and the Spanish IBEX 35 added 1.17% and 0.25% respectively.
Meanwhile, major indicators could fall by more than 5% over the week, which will be the third and most significant weekly decline since mid-June, writes Trading Economics.
Traders are waiting for key data on the US labor market, which will be published on Friday and may be another reason for the US Federal Reserve (Fed) to continue to raise rates at an aggressive pace.
Germany’s trade surplus collapsed to 4.9 billion euros in July from 17.8 billion euros in the same month a year earlier, official statistics show. Imports jumped 26.1% to 122.7 billion euros, while exports rose 10.8% to 127.6 billion euros.
Among the components of the Stoxx Europe 600, InPost S.A. led the way with gains of 6.9%.
Shares of Volvo Car AB fall 0.8%. The company reduced car sales in August by 4.6% in annual terms against the backdrop of the energy crisis and new outbreaks of COVID-19 in China.
British Reckitt Benckiser Group PLC rose 1.9% despite the news that the head of the company, Laxman Narasimhan, left for the American Starbucks Corp., which owns the world’s largest coffee shop chain.
Shares of Shell Plc add 2%. The British oil and gas company, together with the American Exxon Mobil Corp. sells California JV Aera Energy LLC to German investment company IKAV Capital Partners GmbH.
The stock markets of the largest countries in the Asia-Pacific region are falling at the auction on Thursday on the continuing fears about the rise in interest rates by the central banks of the world.
Global equity markets have come under pressure this week following the annual economic symposium at Jackson Hole, during which Fed Chairman Jerome Powell and a number of European Central Bank officials called for – despite the risks of a recession – to raise rates to a level that will control inflation.
“At some point, central banks will realize that inflation remains high despite the increase in interest rates, and they will stop,” said Clifford Bennett, chief economist at ACY Securities.
The Hong Kong Hang Seng index fell by 1.7% by 08:20 Moscow time, the Chinese Shanghai Composite index by 0.1%.
Among the leaders of the decline in quotations on the Hong Kong Stock Exchange are shares of the Internet company Meituan (-5.2%), casino operator Sands China Ltd. (-5%), automaker BYD Co. Ltd. (-4.9%) and restaurant chain owner Haidilao International Holding Ltd. (-3.9%).
China’s manufacturing purchasing managers’ index (PMI) fell to 49.5 in August from 50.4 in the previous month, according to data from Caixin Media Co. and S&P Global, which calculate the value of the indicator.
A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening. Analysts had expected a less significant fall, on average, to 50.2 points, according to a Trading Economics poll.
Meanwhile, Caixin and S&P Global’s reading came close to the official manufacturing PMI estimate of 49.4 released by China’s National Bureau of Statistics a day earlier.
The value of the Japanese Nikkei 225 index decreased by 1.6% by 8:30 Moscow time.
Among the components of the index, shares of the chemical Unitika Ltd. are the most actively depreciating. (-4.6%), trading Marubeni Corp. (-4%) and engineering Denso Corp. (-3.9%).
Papers of the media company Kadokawa Corp. rise by 5% on the news that its IT division – FromSoftware Inc. – invested in Sony Group Corp. and Tencent Holdings Ltd.
The South Korean index Kospi by 8:35 Moscow time fell by 1.8%.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. cheaper by 2%, automaker Kia Corp. – by 0.3%.
The South Korean economy in the second quarter of 2022 grew by 2.9% compared to the same period last year, showed the final data of the Bank of Korea. Compared to the first quarter of 2022, the country’s GDP increased by 0.7%.
Both estimates coincided with preliminary data.
The Australian S&P/ASX 200 fell 1.7%.
The market value of the world’s largest mining companies BHP and Rio Tinto falls by 1% and 1.3% respectively.
The composite index of the largest companies in the Stoxx Europe 600 region decreased by 0.57% by 11:32 a.m. and amounted to 417.40 points.
The German DAX fell 0.5%, the French CAC 40 – 0.7%, the British FTSE 100 – 0.6%. The Italian FTSE MIB and the Spanish IBEX 35 were down 0.23% and 0.5% respectively.
Traders evaluate the latest statistics from European countries.
Consumer prices in France, harmonized with European Union standards, rose 6.5% year-on-year in August, according to preliminary data from the Insee National Statistical Office. Thus, the growth rate slowed down compared to 6.8% in July. Analysts had expected weakening to just 6.7%, according to Trading Economics.
Meanwhile, French consumer spending fell 0.8% in July from the previous month. The average forecast of experts assumed a decline of 0.3%, according to Trading Economics. Bloomberg respondents had forecast a 0.2% contraction.
French GDP increased by 0.5% in the second quarter compared to the previous three months, according to final data from the national statistical institute Insee. The final data coincided with the preliminary estimate. Analysts, on average, did not expect a revision, according to a Trading Economics poll.
The number of unemployed in Germany in August increased by 28 thousand – up to 2.497 million, according to the data of the Federal Employment Agency of Germany. The rise in the indicator was noted for the third month in a row.
Unemployment rose to 5.5% from 5.4% a month earlier.
Experts polled by Bloomberg predicted, on average, an increase in the number of unemployed by 28.5 thousand and a rise in the unemployment rate to 5.5%. Respondents of Trading Economics assumed an increase in the first indicator by 28 thousand and an increase in unemployment to 5.5%.
The drop leaders among Stoxx Europe 600 components are shares of the Polish supermarket chain Dino Polska, which shed 4.3%.
Airbus SE shares are down 1.9%. European Aerospace Corporation CFO Dominic Asam will leave his post in early March next year, the company said in a statement. He will take the position of CFO of SAP SE.
Danske Bank AS added 0.4% in price. A Danish bank will write off the debt of 90 thousand customers in connection with the discovery of errors in debt collection systems.
Stock indices of the largest countries in the Asia-Pacific region are mainly falling during trading on Wednesday following the decline in the US stock market, as well as due to weak statistical data from China.
The Purchasing Managers’ Index (PMI) for China’s manufacturing industry rose to 49.4 in August from 49 in the previous month, the country’s National Bureau of Statistics said.
A PMI value above 50 points indicates an increase in activity in the sector, below – its weakening. The indicator is below this level for the second month. Meanwhile, analysts had expected a less significant increase on average – to 49.2 points, according to the results of polls by The Wall Street Journal and Trading Economics.
PMI services and construction fell this month to 52.6 points from 53.8 points in July. Consolidated PMI fell to 51.7 points from 52.5 points.
China’s Shanghai Composite index fell 0.2% by 8:43 qoq, while Hong Kong’s Hang Seng added 0.5%.
Leading gainers on the Hong Kong Stock Exchange include shares of restaurant chain owner Haidilao International Holding Ltd. (+6.6%), game developer Netease Inc. (+3.9%), Internet company Meituan (+4.2%), sporting goods manufacturer Li Ning Co. (+4%).
Meanwhile, shares of automotive companies BYD (-7.5%) and Geely (-1.2%), oil PetroChina (-1.3%) fell in price.
Country Garden Holdings Co. share price fell by 4.8%. China’s largest real estate developer by sales in the first half of the year reduced its net profit by 96%, which was the largest decline since the company’s entry into the Hong Kong stock exchange in 2007.
The Japanese Nikkei 225 fell 0.5% by 8:38 a.m.
Oil company Inpex is down 3.5%, metals producers Pacific Metals Co. and Japan Steel Works – respectively by 2.3% and 2.4%.
In addition, shares of investment and technology company Softbank Group (-0.3%), consumer electronics manufacturer Sony (-1.9%), Asia’s largest clothing retailer Fast Retailing (-0.9%) are depreciating.
Industrial production in Japan in July decreased by 1.8% compared to the same month last year, according to preliminary data. The indicator showed a decline for the fifth month in a row.
The number of homes started in the country last month fell 5.4% year on year. The index has been declining for the third month. Analysts had expected a 4.1% contraction.
Meanwhile, Japan’s consumer confidence index rose to a three-month high in August at 32.5 points. In July, the indicator was at a minimum for 18 months – 30.2 points. The average forecast of experts assumed a rise of only 31 points.
Retail sales in the country in July increased by 2.4% compared to the same month last year. Thus, they rose for the fifth month in a row. Analysts, on average, expected a less significant increase of 1.9%, according to Trading Economics.
The South Korean index Kospi rose by 0.7% by 8:36 a.m.
Shares of one of the world’s largest manufacturers of chips and consumer electronics Samsung Electronics Co. rose in price by 1.4%, automaker Hyundai Motor – by 0.3%.
The Australian S&P/ASX 200 fell 0.3%.
The market value of the world’s largest mining companies BHP and Rio Tinto fell by 2.8% and 0.9%, respectively.
Investors are awaiting a speech by US Federal Reserve Chairman Jerome Powell at the annual economic symposium in Jackson Hole. Powell is expected to reiterate the US central bank’s commitment to rapidly raising rates to curb inflation.
Also in the spotlight is the news that British energy market regulator Ofgem will raise its electricity bill cap by 80% to £3,549 a year in October, after raising it by 54% in April.
The composite index of the largest companies in the region Stoxx Europe 600 by 10:59 Moscow time increased by 0.09% and amounted to 433.77 points.
The German DAX index rises by 0.32%, the French CAC 40 – by 0.27%, the British FTSE 100 – by 0.47%. The Italian FTSE MIB and the Spanish IBEX 35 are up 0.31% and 0.41% respectively.
French consumer confidence rose unexpectedly to 82 in August from 80 in July, the lowest level since June 2013. The indicator rose for the first time in eight months. Analysts on average predicted the indicator at the level of 79 points, writes Trading Economics.
Leading index of consumer confidence in Germany, calculated by the research company GfK, fell to a minimum since 1991, due to concerns about rising energy prices.
The value of the September index fell to minus 36.5 points compared to minus 30.9 points a month earlier. Analysts on average predicted a decline to minus 31.8 points, according to Trading Economics.
Shares of SAS AB rise in price by 1%. The Scandinavian airline increased its net loss in the third quarter of fiscal year 2022 due to flight cancellations and pilot strikes.
The price of Deutsche Lufthansa AG shares increases by 0.2%. The German carrier intends to continue talks with the union representing the company’s pilots amid wage disputes that threaten the company with strikes. Meanwhile, the union has already begun preparations for a strike.
Among the growth leaders in the composite regional index are traded shares of SKF AB, which produces health and hygiene products, (+6.2%), the Swedish oil and gas Orron Energy (+4.9%) and the Swiss online pharmacy Zur Rose Group AG (+ 3.8%).
