Asian stocks decline on pre-CPI anxiety, with the Hang Seng falling. As investors became more cautious ahead of important U.S. inflation data on Wednesday, most Asian stock markets traded in a flat to low range.
Asian stocks decline on Tencent’s revenue losses spread
In the lead-up to important U.S. inflation data, most Asian stock markets traded in a neutral to low span on Wednesday. With Hong Kong’s Hang Seng index lost most of its value due to steep losses in market leader Tencent.
The internet behemoth Tencent Holdings Ltd (HK:0700) saw a 4% decline. Which contributed significantly to the Hang Seng index’s 0.6 percent decline.
Prosus (AS: PRX), a significant shareholder, reported this week that it deposited 96 million. Tencent shares, valued at approximately $4.4 billion, into the Hong Kong Central Clearing and Settlement System. Typically, the act signals the sale of shares, with Prosus claiming that the purpose of the action is to fund the buyback scheme.
Tencent’s revenue losses spread to other technology stocks, with majors like Baidu Inc. (HK:9888) and Alibaba Group Holding Ltd. (HK:9988) (NYSE: BABA). Each suffers a loss of about 2%.
Asian stock markets are nervous about the US CPI release today
More broad Asian markets were mostly quiet as investors prepared for important CPI inflation data. That will likely affect the Federal Reserve’s decision to increase interest rates later in the day.
Shanghai Shenzhen CSI 300 and Shanghai Composite indexes in China increased a bit, But they were still in trouble as a result of this week’s softer-than-expected inflation data. Which indicates a sluggish revival of the economy in the nation.
After Warren Buffett said he was thinking about making additional investments in domestic stocks on Tuesday. The Nikkei 225 index in Japan increased by 0.6%, extending significant gains from that day.
The Fed’s March meeting minutes, which are due later today, will also be closely watched for additional monetary policy signs. Though markets have started to speculate that the central bank has little space to continue raising rates.
Although a possible halt in rate increases is positive for Asian markets. A subsequent U.S. recession could increase demand for risky assets. Neel Kashkari cautioned that a U.S. recession could occur in the current year as a result of rising interest rates and slower lending.
A flat Asia FX, a falling dollar ahead of CPI data, and Fed minutes
The majority of Asian currencies showed little movement on Wednesday. But the dollar fell further as markets waited for additional hints about monetary policy from important inflation statistics. And the Federal Reserve’s March meeting minutes, which were scheduled to be released later in the day.
Neel Kashkari, president of the Minneapolis Fed, issued a caution about a potential recession that kept opinion down. Though he also stated the fact rising prices were bound to be more severe for the labor market.
Kashkari’s remarks didn’t do much to boost the dollar; the dollar index and dollar index futures both fell by about 0.2 percent. However, futures trading at a price point lower than the gauge, Suggests that traders are most likely preparing for further dollar weakness.
The Australian dollar was one of the handfuls of performers, rising 0.4% as it regained from significant losses. While the South Korean won fell by 0.2 percent.
