The Asian week begins with a sharp drop in the Japanese Stock Exchange, where Softbank, Alibaba's largest shareholder, is especially under fire. The Hong Kong price list also fell (-1,1%). Conversely, the New Zealand Stock Exchange jumped following the confirmation of the Conservative government in the general election held on Saturday. On the raw materials front, crude oil prices are down (-0,3%), together with copper and silver (0,2% each).
More than 200 stocks were up in the MSCI Asia Pacific Index as of 9:23 am in Tokyo, while 193 were down. The NZX 50 kiwifruit index rose to its highest since April (+1,4) with the confirmation of John Key, a former currency trader, as New Zealand prime minister. Initially, Japan's Topix also rose 0,1%, while the yen was trading at a six-year low. The New Zealand dollar rose 0,2% in the morning, while the Korean won recovered from its lows in the last five months, gaining 0,4%.
But what made the markets nervous and the major Asian stock exchanges change gears was the news from China. On the macro front, economists expect a decline in China's private manufacturing index for the second consecutive month. And Beijing's Finance Minister Lou Jiwei confirmed that growth in Asia's largest economy is experiencing downward pressure.
“After 24 hours of volatility caused by, among other things, the Scottish independence referendum and Alibaba's IPO, the markets are calmer today,” said Evan Lucas, markets strategist at IG in Melbourne. "It remains to be seen what will happen now, with markets focused on the last quarter of 2014."
Australia's S&P/ASX 200 fell 0,2% in the morning, while Seoul's Kospi slid 0,6%.
Attachments: The Bloomberg article
