Asian Markets Turn Lower Ahead of China GDP and Retail Sales Data

Arjun Pandit
16 Jan, 2024
Mumbai

Benchmark indexes in Asia traded down amid rising geopolitical tensions in the Middle East.

Market indexes in Tokyo, Shanghai, Hong Kong, Seoul, and Mumbai fell after Houthi rebels launched attacks in the Red Sea targeting U.S.-controlled ships.

Moreover, more shipping companies are avoiding the Red Sea shipping lanes to the Suez Canal and diverting shipments along the coast of South Africa.

But the shipment rerouting is disrupting supply chains between Asia and Europe and increasing the cost and time of shipments from India and Asia.

On the economic front, investors reviewed the latest update on international trade and the wholesale price index by India.

The trade deficit in December declined to a three-month low of $19.8 billion, the Commerce Ministry said late Monday.

A separate report showed that India's wholesale inflation increased to 0.73% in December, the office of the Economic Adviser reported on Monday.

Wholesale inflation edged higher after food prices rose 5.4%, primary article prices increased 5.8%, but fuel and power prices edged down 2.4%.

The Sensex index increased 0.08% to 73,384.57, and the Nifty index rose 0.07% to 22,112.70.

On the Mumbai stock exchange, 273 stocks traded at their 52-week highs and 7 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds eased 7.15%, and the Indian rupee edged lower to ₹82.94 against the U.S. dollar.

The Hang Seng index in Hong Kong fell 2.2% to 15,864.20 after property developers dropped a new low on debt default worries and a lack of government stimulus to spur demand.

The Hang Seng index dropped to a 14-month low and extended 2024 losses by 6%, after falling 14% in 2023 and for the fourth year in a row after foreign investors sold their holdings and avoided exposure to Chinese stocks.

The CSI 300 index in Shanghai traded down 0.2% to 3,275.57 ahead of the release of retail sales, GDP, and gross investment data on Wednesday.

China's economy is expected to expand at least 5.0% in 2023, according to economists interviewed by Ticker.com.

In Tokyo, the Nikkei index declined 0.5% to 35,721.08, and the index hovered near its 34-year high and traded in a tight range.

In Sydney, Australia, the ASX 200 index decreased 1% to 7,414.80 and dropped to a four-week low after energy and mining-related stocks led the decline.