Asian stocks fell broadly on Friday as investors digested the monetary policy announcements from the ECB and BoJ and looked ahead to next week’s FOMC meeting for clues on whether a pivot on the pace of rate hikes is on the table.
U.S. GDP data released on Thursday surprised to the upside but also offered some evidence of a healthy slowdown that could have a positive impact on fighting inflation.
The European Central Bank on Thursday doubled its deposit rate to 1.5 percent to fight inflation but hinted at a slower pace of future increases, saying that “substantial” progress had already been made in its bid to fight off a surge in inflation, RTTNews cited.
The Japanese yen maintained 146-levels after the Bank of Japan kept rates at ultra-low levels, as widely expected.
China’s Shanghai Composite Index tumbled 2.3 percent to 2,915.93 after reports that Chinese cities are introducing new COVID-19 curbs.
The IMF cuts its growth forecast for Asia today, saying China’s “sharp and uncharacteristic” slowdown will drag on growth across the region.
Hong Kong’s Hang Seng Index closed 3.7 percent lower at 14,863.06 after having plunged more than 4 percent to its lowest levels since April 2009.
Japanese shares fell notably after U.S. tech giants Amazon.com, Microsoft and Intel said that customers were taking an axe to cloud and datacenter spending.
The Nikkei 225 Index slid 0.9 percent to 27,105.20, while the broader Topix closed 0.3 percent lower at 1,899.05. Robot-maker Fanuc plunged 5.5 percent after slashing its earnings forecast.
The Japanese yen swirled between gains and losses against the dollar after the Bank of Japan held interest rates at ultra-low levels but raised its inflation target.
Tokyo CPI inflation hit a 33-year high in October, data showed earlier today, in a sign of broadening inflationary pressure. Another report showed Japan’s unemployment rate unexpectedly edged higher in September.
Seoul shares ended lower to snap a two-day winning streak in the wake of dim guidance from major U.S. tech companies. The Kospi dropped 0.9 percent to 2,268.40.
Tech heavyweight Samsung Electronics tumbled 3.7 percent, while chip giant SK Hynix lost 7.3 percent to extend losses from the previous session after reporting a steep decline in third-quarter profit.
Australian markets snapped a four-day winning streak as heavyweight miners and steelmakers slipped on China demand concerns. BlueScope Steel, BHP, Rio Tinto, Mineral Resources and Fortescue Metals Group plummeted 4-8 percent.
The benchmark S&P/ASX 200 Index fell 0.9 percent to 6,785.70 but rose 1.6 percent for the week – marking its best since the week ended Oct. 7. The broader All Ordinaries Index settled 1.0 percent lower at 6,973.50.
Across the Tasman Sea, New Zealand’s benchmark S&P NZX-50 Index edged up 0.3 percent to 11,129.53.
U.S. stocks ended mixed overnight and bond yields dipped after the release of GDP data showing the U.S. economy grew 2.6 percent in the third quarter following two straight quarters of contractions.
The Dow rose 0.6 percent to extend gains for the fifth straight session and reach its highest closing level in well over a month.
The tech-heavy Nasdaq Composite tumbled 1.6 percent after Meta’s quarterly miss, while the S&P 500 shed 0.6 percent.
