Asian Markets Down on US rate Fears
Markets in Japan and Australia opened lower on Wednesday, tracking overnight weakness in US markets as investors brace for a possible rise in US rates.
Japan’s benchmark Nikkei 225 was down 0.57% – or 97.38 points at midday – at 17,137.60. Profit-taking is adding to downward pressure after five sessions of gains.
In Australia, the S&P ASX/200 was also lower, by 1.1% at 5,319.10 points.
In South Korea, the Kospi was flat with a negative bias at 1,982.26.
Over in China the Shanghai Composite was flat at 2,920.28 points. Meanwhile in Hong Kong, the benchmark Hang Seng index was down a touch, by 0.15% to 20,780.30.
US markets closed mostly lower overnight, as investors weighed the prospect of a rate hike by the US central bank – the Federal Reserve.
Softbank shares have traded up by as much as 3.5% in Tokyo, outperforming the broader market. The Japanese technology firm has disclosed it is offloading $7.9bn (£5.4bn) worth of shares in Chinese e-commerce giant Alibaba. The transaction would reduce Softbank’s stake in Alibaba from 32.2% to 28%.
The focus in Asia will mainly be on Japan. Prime Minister Shinzo Abe is reportedly due to announce a postponement in the nation’s sales tax increase at a press conference later on Wednesday.
The next increase in the tax was supposed to take place in April next year, boosting to 10% from the current 8%. But Japanese media have been reporting that Mr Abe wants to delay this until 2019.
Courtesy : BBC