Asian Markets Mostly Lower On Weak Global Cues

(RTTNews) - Asian stock markets are mostly lower on Wednesday, following the broadly negative cues from global markets overnight, due to continuing concerns about rising interest rates and economic slowdown. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed on the markets. Asian Markets closed mostly lower on Tuesday.

In its latest World Economic Outlook Report, the IMF has lowered the global growth projection for next year and warned that the world economy is set to witness more pain next year. It cut the growth projection for next year to 2.7% from 3.3%, while it retained the outlook for this year at 3.2% after a 6% expansion in 2021.

Roughly a third of the world economy faces two consecutive quarters of negative growth, the IMF said. "In short, the worst is yet to come and, for many people, 2023 will feel like a recession."

Investors look ahead to U.S. inflation data, minutes from the Fed's September meeting and reports on retail sales and consumer sentiment due this week, for more insights into policymakers' view of where inflation stands and the outlook for the future path of interest rates.

The Australian stock market is slightly higher in choppy trading on Wednesday, recouping some of the losses in the previous three sessions, with the benchmark S&P/ASX 200 staying above the 6,600 level, despite the broadly negative cues from global markets overnight, with gains in financial stocks. Traders also picked up battered stocks at a bargain following the recent market weakness.

The benchmark S&P/ASX 200 Index is gaining 12.90 points or 0.19 percent to 6,657.90, after touching a high of 6,663.00 and low of 6,633.00 earlier. The broader All Ordinaries Index is up 10.00 points or 0.15 percent to 6,854.30. Australian stocks ended modestly lower on Tuesday.

Among major miners, BHP Group is edging down 0.2 percent, Rio Tinto is losing more than 1 percent, Fortescue Metals is slipping almost 2 percent and Mineral Resources is declining 3.5 percent, while OZ Minerals is gaining almost 1 percent.

Oil stocks are lower. Santos and Woodside Energy are losing almost 2 percent each, while Origin Energy is declining more than 2 percent and Beach energy is edging down 0.5 percent.

In the tech space, Afterpay owner Block is slipping more than 3 percent, Zip is losing almost 2 percent, Appen is down more than 1 percent, Xero is declining more than 2 percent and WiseTech Global is edging down 0.2 percent.

Among the big four banks, National Australia Bank is adding almost 1 percent and Commonwealth Bank is gaining almost 2 percent, while ANZ Banking and Westpac are gaining more than 2 percent each. Among gold miners, Gold Road Resources and Evolution Mining are losing more than 1 percent each, while Northern Star Resources and Newcrest Mining are down almost 1 percent each. Resolute Mining is gaining more than 1 percent.

In other news, shares in Queensland Pacific Metals are soaring almost 17 percent on news that General Motors will take an equity stake in the miner by investing up to $69 million.

Shares in Coronado Global Resources are surging 6.5 percent after confirming it is in discussions with fellow coal miner Peabody Energy about a potential merger.

In the currency market, the Aussie dollar is trading at $0.625 on Wednesday.

The Japanese stock market is slightly lower in choppy trading on Wednesday, extending the losses in the previous two sessions, with the Nikkei 225 falling below the 26,400 level, following the broadly negative cues from global markets overnight, with weakness in technology stocks and exporters. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed on the market.

The benchmark Nikkei 225 Index closed the morning session at 26,364.25, down 37.00 points or 0.14 percent, after hitting a low of 26,313.41 and a high of 26,495.75 earlier. Japanese stocks closed sharply lower on Tuesday.

Market heavyweight SoftBank Group is gaining almost 2 percent and Uniqlo operator Fast Retailing is adding almost 1 percent. Among automakers, Honda is edging down 0.1 percent, while Toyota is gaining more the 1 percent.

In the tech space, Screen Holdings is losing more than 3 percent, Tokyo Electron is declining more than 4 percent and Advantest is slipping almost 3 percent.

In the banking sector, Mizuho Financial and Sumitomo Mitsui Financial are edging up 0.1 to 0.3 percent each, while Mitsubishi UFJ Financial is edging down 0.2 percent.

Among the major exporters, Sony and Panasonic are losing more than 1 percent each, while Mitsubishi Electric is edging down 0.5 percent and Canon is slipping almost 1 percent.

Among the other major losers, NEXON and Sumco are losing more than 3 percent each, while Pacific Metals and Sumitomo Osaka Cement are down almost 3 percent each.

Conversely, there are no major gainers.

In economic news, the value of core machinery orders in Japan was down a seasonally adjusted 5.8 percent on month in August, the Cabinet Office said on Wednesday - standing at 909.8 billion yen. That missed expectations for a decline of 2.3 percent following the 5.3 percent gain in July. On a yearly basis, core machinery orders climbed 9.7 percent - again shy of expectations for an increase of 12.6 percent and down from 12.8 percent in the previous month. For the third quarter of 2022, orders are seen lower by 1.8 percent on quarter and higher by 7.4 percent on year.

In the currency market, the U.S. dollar is trading in the lower 146 yen-range on Wednesday.

Elsewhere in Asia, Hong Kong and China are down 2.1 and 1.2 percent, respectively, while New Zealand, Singapore, South Korea, Malaysia, Indonesia and Taiwan are lower by between 0.3 and 0.7 percent each.

On Wall Street, stocks recovered gradually after a weak start Tuesday morning, and after emerging into positive territory, faltered again as the day progressed amid rising worries about interest rates and economic slowdown. A downward revision in global growth forecast by the International Monetary Fund weighed as well.

The major averages closed mixed on the day. The Dow ended the session with a gain of 36.31 points or 0.12 percent at 29,239.19, while the S&P 500 settled at 3,588.84, down 23.55 points or 0.65 percent from the previous close and the Nasdaq settled at 10,426.19, down 115.91 points or 1.1 percent.

The major European markets closed weak, as worries about surging inflation, rising interest rates and slowing growth continued to weigh on sentiment. The U.K.'s FTSE 100 shed 1.06 percent, Germany's DAX ended 0.43 percent down, and France's CAC 40 edged down 0.13 percent.

Crude oil prices fell on Tuesday, extending losses from the previous session on concerns about outlook for energy demand amid the rising possibility of a global recession. A surge in COVID-19 cases in China and fears of further monetary policy tightening also weighed. West Texas Intermediate Crude oil futures for November sank $1.78 or 2 percent at $89.35 a barrel.