Asian Stocks Succumb to Heavy Selling Pressure

June 30, 2017
Asian Stocks Succumb to Heavy Selling Pressure

Asian Stocks Succumb to Heavy Selling Pressure

By Investors Hub

Asian stocks succumbed to heavy selling pressure on Friday as broad declines on Wall Street and in Europe overnight overshadowed encouraging data from China.

Chinese shares bucked the weak trend to end a tad higher as official manufacturing and services sector data added to signs of a stabilizing economy.

The benchmark Shanghai Composite Index edged up 3.00 points or 0.1 percent to 3,191.06, while Hong Kong’s Hang Seng Index slid 200.84 points or 0.8 percent to 25,764.58.

China’s official manufacturing PMI rose to 51.7 in June from 51.2 in May, indicating the quickest pace of expansion in three months. Non-manufacturing activity also expanded at a faster pace in June, with the PMI coming in at 54.9, up from 54.5 in May.

Meanwhile, Japanese shares hit two-week lows, with a stronger yen, weak overnight cues from Wall Street and mixed economic reports weighing on sentiment.

While consumer price inflation rose for the fifth straight month in May, consumer spending remained tepid, the jobless rate ticked higher and industrial output slipped back into contraction, adding to underlying risks.

The Nikkei 225 Index slumped 186.87 points or 0.9 percent to 20,033.43, dragged down by exporters and technology stocks. The broader Topix Index closed 0.8 percent lower at 1,611.90, with 30 of the 33 subsectors ending in negative territory.

Australian shares tumbled after U.S. stocks ended with steep losses overnight. The benchmark S&P/ASX 200 Index plunged 96.60 points or 1.7 percent to 5,721.50, marking its biggest single-day drop in seven months. The broader All Ordinaries Index finished down 91.90 points or 1.6 percent at 5,764.

The big four banks fell more than 1 percent each, while BT Investment Management slumped 7.7 percent to its lowest level in over two weeks. South32 lost 2.9 percent after suspending mining operations at its Appin colliery.

Seoul shares fell amid selling by foreign and institutional investors as disappointing industrial output data added to worries about a rise in global interest rates. The benchmark Kospi dipped 3.87 points or 0.1 percent to 2,391.79.

On an annual basis, South Korean industrial output grew just 0.1 percent in May after rising an upwardly revised 1.8 percent in the previous month, official data showed.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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