Connect with us
Financial Press
asia-markets:-asia-pacific-markets-mixed-as-australia-falls-into-first-recession-in-three-decades
asia-markets:-asia-pacific-markets-mixed-as-australia-falls-into-first-recession-in-three-decades

Breaking

Asia Markets: Asia-Pacific markets mixed as Australia falls into first recession in three decades

Asia Markets

Stocks rise in Sydney, but dip in Tokyo and Hong Kong

Stocks rose Wednesday in Sydney.


Getty Images/iStock Photos

Asia-Pacific markets were mixed in early trading Wednesday, after Wall Street hit more records and Australia confirmed it was in its first recession in 29 years.

Japan’s Nikkei 225
NIK,
+0.47%

advanced 0.2% while Hong Kong’s Hang Seng Index
HSI,
-0.25%

slid 0.6%. The Shanghai Composite
SHCOMP,
-0.17%

fell 0.4% while the smaller-cap Shenzhen Composite
399106,
+0.45%

advanced 0.2%. South Korea’s Kospi
180721,
+0.63%

slipped 0.2%, while benchmark indexes in Taiwan
Y9999,
-0.03%

, Singapore
STI,
+0.05%

and Indonesia
JAKIDX,
+0.02%

fell. Australia’s S&P/ASX 200
XJO,
+1.84%

gained 1.6%.

“A positive tone had been assumed by Asia markets, finding inspiration from Wall Street with the gains notched overnight,” said Jingyi Pan, market strategist at IG in Singapore, said in a commentary. “Although the U.S. economy is nowhere near the state before the COVID-19 hit yet, these evidences of continued recovery nevertheless works in the favor of keeping the cautious optimism and the equity rally going.”

Data showed Australia’s economy shrank 7% in the second quarter, after slipping 0.3% in the previous quarter, marking its first back-to-back periods of contraction — the widely recognized signifier of recession — since 1991. The massive downturn, caused by coronavirus-related shutdowns, has been softened by record fiscal stimulus to keep businesses open and workers paid.

In other economic data, South Korea’s inflation hit a five-month high, gaining 0.7% in August, its fastest growth since March and outpacing analysts’ expectations.

On Tuesday, the S&P 500
SPX,
+0.75%

and Nasdaq Composite
COMP,
+1.39%

closed at new records as encouraging economic data and dovish statements from the Fed fueled buying; tech stocks especially benefited. The Dow Jones Industrial Average
DJIA,
+0.75%

also rose slightly.

Benchmark U.S. crude
CLV20,
+0.53%

added 36 cents to $43.12 a barrel. It rose 15 cents to $42.76 a barrel on Tuesday. Brent crude
BRNX20,
+0.63%

, the international standard, gained 38 cents to $45.96 a barrel.

The U.S. dollar
USDJPY,
+0.28%

inched up to 106.07 Japanese yen from 105.97 yen.

The Associated Press contributed to this report.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Breaking

Attention, investors: Spooky times are on the way for the stock market. You should trust your instincts if you’re nervous because of the wobbly...

Breaking

NewsWatch Published: Sept. 20, 2020 at 12:00 p.m. ET MARKETWATCH FRONT PAGE Your bright ideas about investing are actually costing you money See full...

Breaking

Published: Sept. 20, 2020 at 11:46 a.m. ET Lilly and Roche both say they both expect to publish this week’s clinical-trial findings in peer-reviewed...

Breaking

Key Words Last Updated: Sept. 20, 2020 at 8:30 p.m. ET First Published: Sept. 20, 2020 at 2:21 p.m. ET Bill Gates. Getty Images...