tradingkey.logo

Asian stocks fall as yen strength weighs; Hong Kong hit by JD.com losses

Investing.comAug 21, 2024 5:06 AM

Investing.com-- Asian stocks retreated on Wednesday as strength in the yen spurred a further unwinding in the carry trade, while losses in e-commerce major JD.com dragged down Hong Kong’s Hang Seng index.


Regional markets tracked overnight weakness in Wall Street, as U.S. stocks snapped an eight-day rebound rally amid some caution before an address by Federal Reserve Chair Jerome Powell later this week.


U.S. stock index futures moved little in Asian trade. 



Hang Seng falls, JD.com sinks on report of Walmart stake sale


Hong Kong’s Hang Seng index was one of the worst performers in Asia on Wednesday, losing 0.7%. 


JD.com (NASDAQ:JD) (HK:9618) was the biggest weight on the index, with the stock sinking around 11% after Bloomberg reported that Walmart Inc (NYSE:WMT) was planning to sell its stake in the e-commerce giant for $3.74 billion. 

Jd Health International Inc (HK:6618), which is a unit of the e-commerce firm, fell nearly 4%, while rival Alibaba Group (NYSE:BABA) (HK:9988) fell 2%.


Wednesday's losses saw JD largely reverse recent gains made on stronger-than-expected earnings for the June quarter. But the firm faces increased headwinds from slowing demand in China, its biggest market.


The Hang Seng was also headed back towards an over three-month low hit earlier in August. Concerns over slowing growth in China had battered sentiment towards local markets.


China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell about 0.2% on Wednesday, and were in sight of recent six-month lows. 



Japan’s Nikkei sinks as yen appreciates 


Japan’s Nikkei 225 and TOPIX indexes fell 0.8% and 0.7%, respectively, as strength in the yen weighed.


A sharp appreciation in the yen through late-July and early-August- which saw the USDJPY pair fall as low as 141 yen- largely unwound the yen carry trade. 


While the yen had weakened over the past week, it appreciated sharply on Monday, with USDJPY hovering around 145 by Wednesday. 


Strength in the yen pressured export-oriented stocks in Japan, which had driven a bulk of the Nikkei’s rally over the past two years. 


Jefferies said in a recent note that yen strength presented a weaker earnings outlook for Japanese markets. But the brokerage said persistent strength in the yen presented an overweight stance on Japanese markets, especially those with exposure to domestic demand.


Data on Wednesday showed Japan’s exports grew less than expected in July, while imports accelerated on improving local demand. 


Broader Asian markets drifted lower, tracking overnight weakness on Wall Street. Australia’s ASX 200 index fell 0.4%, while South Korea’s KOSPI lost 0.2%. 


Futures for India’s Nifty 50 index pointed to a mildly weaker open, although the index remained in sight of recent peaks. 

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Recommended Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.