TOKYO – Asian stocks fell mostly on Tuesday as concerns about China undermined investor optimism following a mixed ending on Wall Street.
Nikkei 225 JP Japan Benchmark: NIK
lost 0.3%. Australia S & P / ASX 200 AU: XJO
fell 1% while South Korea’s Kospi KR: 180721
decreased 0.8%. Hang Seng HK from Hong Kong: HSI
added 1.7% and the Shanghai CN Composite Index: SHCOMP
rose 0.5%. Singapore benchmarks SG: STI,
Taiwan TW: Y9999
and Indonesian ID: JAKIDX
An energy crisis in parts of China has shut down factories and it left some homes without power in an effort to meet official energy use targets. That could have global repercussions, including on supplies needed for manufacturing across Asia, just before the year-end shopping season.
The problems add to a shortage of parts and raw materials already affecting regional manufacturing due to supply disruptions caused by the coronavirus pandemic.
Analysts say the power shortage in China could be prolonged as demand for coal and natural gas increases during the winter.
Another persistent market concern that resonates in China is the possible collapse of one of China’s largest real estate developers, Evergrande Group HK: 3333,
you are fighting to avoid a billions of dollars of debt defaulted.
“Fundamentally, contagion risks are very important due to pass-through within the real estate sector due to similar risks to home buyers and banks through balance sheet exposures,” said Vishnu Varathan of the Department of the Treasury of Asia and Oceania at Mizuho Bank. “The fact is that Evergrande is, at best, a risk that has been temporarily diminished, but is far from being abolished.”
The vote for the leader of Japan’s ruling party, scheduled for Wednesday, also weighed on Tokyo operations, analysts say, as players adopted a wait-and-see attitude. Four candidates are in the running to replace Prime Minister Yoshihide Suga, who will step down after a year in office. No major economic or foreign policy changes are expected, as the pro-American Liberal Democratic Party has ruled Japan almost continuously in recent decades.
Wall Street’s major stock indexes ended up mixed, as losses by tech and healthcare companies outpaced gains elsewhere in the market.
The S&P 500 SPX
It fell 0.3% to 4,443.11, ending a three-day winning streak for the benchmark, which last week posted its first weekly gain in three weeks. The Nasdaq COMP
fell 0.5% to 14,969.97, while the Dow DJIA
achieved a gain of 0.2% to 34,869.37.
The 10-year Treasury yield was stable at 1.49%. It was at 1.31% a week ago, as market jitters led investors to invest money in bonds, reducing their performance. It has been going up for the last week.
In energy trading, the benchmark US crude CLX21
added 25 cents to $ 75.70 a barrel in electronic trading on the New York Mercantile Exchange. It gained $ 1.47 to $ 75.45 a barrel on Monday.
Crude Brent BRNX21,
the international standard, rose 21 cents to $ 79.74 a barrel.
In currency trading, the US dollar USDJPY
it rose to 111.16 Japanese yen from 110.99 yen.