Asian Stocks Decline Amidst Widening Monetary Policy Divergence

(RTTNews) - Asian stocks finished mostly lower on Thursday, tracking Wednesday's losses at Wall Street. PBoC's status quo on rates and concerns about economic growth in China also dampened sentiment. The offshore yuan had touched record low to the Dollar earlier in the session. The Japanese Yen too touched the 150 level to the Dollar amidst the continuing monetary policy divergence between a dovish Bank of Japan and a hawkish Fed.

China's Shanghai Composite Index dropped 9 points or 0.31 percent to finish at 3,035.05. The day's trading ranged between 3,013.69 and 3,070.26. The Shenzhen Component Index also lost 0.56 percent to close at 10,965.33.

The Japanese benchmark Nikkei 225 erased 250 points or 0.92 percent to end trading at 27,006.96. The day's trading range was between 26,872.45 and 27,092.55.

Shinsei Bank was the biggest gainer with an 8.15 percent uptick. J. Front Retailing Co gained close to 4 percent. Nisshin Seifun Group also added more than 3 percent. Japan Steel Works gained 2.5 percent, whereas Resona Holdings strengthened 1.8 percent.

Fujikura was the biggest loser with a decline of more than 5 percent. TOTO and Unitika, both lost 2.9 percent each. Fuji Electric Co as well as Seiko Epson Corp declined more than 2 percent.

The Hang Seng Index of the Hong Kong Stock Exchange shed 231 points or 1.40 percent from the previous close to finish trading at 16,280.22. The day's trading range was between a high of 16,452.97 and a low of 16,010.72.

Korean Stock Exchange's Kospi Index shed 19 points or 0.86 percent to close trading at 2,218.09. The day's trading range was between 2,200.44 and 2,231.52.

Australia's S&P/ASX200 closed trading at 6,730.70 after losing 69 points or 1.02 percent. The day's trading was between 6,702.10 and 6,800.10.

Battery materials company Novonix added 7.04 percent after it announced that one of its divisions was selected to enter negotiations to receive $150 million in grant funding from the U.S. Department of Energy. Construction materials business Adbri and Woodside Energy Group, both rallied more than 6 percent. Life Insurance business Challenger and Chalice Mining followed with gains of more than 4 percent.

Copper miner Sandfire Resources was the biggest laggard with a 13 percent drop after the quarterly results update. Technology business Megaport which recently provided its first quarter update also extended losses with a 12 percent decline. Gold miners St Barbara and Evolution Mining shed 8 percent each. Global fintech company Block also shed close to 8 percent.

The NZX 50 of the New Zealand Stock Exchange shed 85 points or 0.78 percent to close at 10,832.03. Trading ranged between 10,810.98 and 10,921.64.

Software business Serko is the top gainer with a 2.4 percent overnight rally, closely followed by Auckland International Airport which added 2.2 percent after it raised its 2023 guidance. Polymer business Skellerup Holdings, banking business Heartland Group Holdings and IT company Pushpay Holdings have also added more than 1 percent.

Electronic components maker EROAD plunged more than 5 percent. Fisher & Paykel Healthcare also shed 4.4 percent. Logistics business Freightways, agribusiness Scales Corporation and building materials business Fletcher Building have all erased more than 3 percent.

The Wall Street had also closed with losses on Wednesday amidst worries over inflation and corporate earnings guidance. Nasdaq Composite shed 0.90 percent to close at 10,680.51 whereas the Dow Jones Industrial Average lost 0.33 percent to finish trading at 30,423.81.