Asian stocks dip on economic worries and uncertainty. Most stocks continued to decline due to a string of disappointing regional earnings.
Asian Stock Markets and Asia Fx Session Rundown
Asian stock markets slipped led by Nikkei
The stockbroker Nomura Holdings Inc (TYO:8604) and the manufacturer of semiconductor testing equipment Advantest Corp. (TYO:6857). Both suffered significant losses, contributing to Japan’s Nikkei 225 index’s 0.3% decline.
Nomura’s stock dropped 7% after its quarterly earnings plunged 76%. Worries about a financial crisis and sluggish growth hurt the company’s investment banking division. The company additionally experienced higher expenses as a result of a lower yen and rising domestic inflation.
The Nikkei’s poorest performance was Advantest. Which fell almost 11% after forecasting a steep decline in quarterly profit owing to declining chip demand.
The South Korean behemoth Samsung Electronics (OTC: SSNLF) Co Ltd (KS:005930) reported a 96% decline in Q1 earnings due to weak chip demand. The company’s semiconductor division reported a record loss. However, Samsung also foresaw a rise in demand in the second portion of the year, which assisted in the regaining of its shares from initial deficits.
Broader markets traded from flat to low
Markets Increased concerns about a financial crisis mainly overshadowed solid results from American technology titans. Asian markets traded in a band of neutral to bearish prices. Following the same trend from Wall Street. The KOSPI index for South Korea remained unchanged.
First Republic Bank’s (NYSE: FRC) shares kept falling after the company reported a sharp decline in deposits. Experts fear that might signal trouble for the whole banking industry.
The biggest economy in Asia, China, reported a far larger-than-expected decrease in industrial earnings during the first three months of the fiscal year, which dampened the mood.
The focus is now on important U.S. GDP statistics that will be released later today. It is anticipated to offer additional clues about a probable recession in the greatest economy in the world. Before of an eagerly anticipated interest rate rise next week, the markets are also anticipating a result on the Federal Reserve’s preferred inflation index.
The BoJ is scheduled to convene on Friday. But the central bank has already hinted that it would maintain its ultra-loose policy.
Asia Fx Markets
On Thursday, the euro traded at a one-year high against the dollar. As Europe’s robust economy clashed with banking crisis worries in the US, the debt limit impasse, and the possibility of a recession.
The sensitive-to-risk Australian dollars failed to hold above the crucial 66-cent level. While the top cryptocurrency, bitcoin, stabilized at $29,400 after seeing huge fluctuations in the session before.
The Bank of Japan’s two-day policy meeting, the first under the new governor Kazuo Ueda, started with the yen in a position of holding.
The euro gained 0.05% to $1.10415, moving back toward the overnight high of $1.1096. which had been the highest level since April of the previous year.
The dollar index, which compares the value of the dollar vs the euro was little changed at 101.41 on Thursday. After falling by 0.42% on Wed and touching a nearly two-week bottom of 101.00.
On Wednesday, Germany boosted its growth projections upward once more. As a study revealed that consumer confidence has been increasing steadily.
After slightly softer-than-expected consumer inflation statistics on Wednesday. Investors of the Australian dollar are more convinced that the RBA will leave rates steady for a second meeting the following week. The price of the currency was unchanged on Thursday at $0.6603 after falling to a 1-1/2-month low of $0.6592 on Wednesday.
