Most Asian stock markets fell on Wednesday, extending recent losses, following cautious comments from Federal Reserve chairman Ben Bernanke on the U.S. economic recovery.
Bernanke admitted that economic growth has been below its potential this year but gave no hints regarding further stimulus plans, dashing investor hopes that that there could be a third round of quantitative easing.
Speaking at the International Monetary Conference in Atlanta yesterday, Bernanke noted that the U.S. economy is still producing at levels well below its potential. "Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established," he said.
Further clues to the direction of the U.S. economy are sought from the Fed's Beige Book report on tap later today and tomorrow's trade data. Investors also fretted about the restructuring of Greek debt and the possibility of further tightening measures from Beijing.
The Japanese market rose slightly, after the May Economy Watchers Survey showed business confidence in Japan improved sharply and exceeded expectations in May. The current conditions index came in at 36, up from 28.3 in April. Economists were expecting the index reading to rise to 33.
The survey results, as well bargain hunting in oversold blue-chip stocks helped the benchmark Nikkei index and the broader Topix index end higher by about 0.1 percent each. The yen's strength against the dollar prompted selling in exporters like Advantest Corp and Honda Motors.
Among utilities, Chubu Electric Power lost 2.1 percent and Kansai Electric Power shed 0.7 percent, while Tokyo Electric Power slumped over 10 percent to a record low on a Nikkei report that all of Japan's nuclear plants may stay idle for some time. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose about 0.8 percent each after JPMorgan upgraded the stocks to "overweight" from "neutral."
China's Shanghai Composite index reversed an early loss to end 0.2 percent higher at a two-week high, lifted by property issues such as Vanke and aluminum shares. But turnover remained thin as investors were wary about further interest-rate increases by the People's Bank of China. Hong Kong's Hang Seng index fell 0.9 percent, as interest rate worries pressured financial and property stocks.
The Australian market hit a fresh two-and-a-half month low, with energy and discretionary stocks taking a beating, after Bernanke didn't hint at further quantitative easing to support the economy. Both the S&P-ASX 200 and the broader All Ordinaries index closed down about 0.7 percent each.
Energy stocks bore the brunt of the selling ahead of the outcome of an OPEC meeting that concludes Wednesday. Woodside lost 2.6 percent, Santos fell 2 percent and Oil Search ended down 0.8 percent.
However, the materials sector saw buying interest, with Rio Tinto gaining 0.4 percent and Fortescue rising 1.9 percent, while BHP Billiton closed subdued. Gold miner Newcrest Mining ended down 1.8 percent. In the banking sector, Westpac closed little changed despite a brokerage upgrade, while Macquarie Group lost 3.1 percent. Retailers lost ground, with David Jones falling 2.2 percent to a two-year low while JB Hi-Fi tumbled 2.4 percent to a 22-month low.
South Korea's Kospi average gave up initial gains to close 0.8 percent lower, with large-cap shipbuilders and automakers leading the declines. Hyundai Heavy Industries slumped 5.6 percent on mounting speculation that it may bid for the 15 percent stake in Hynix Semiconductor held by the chip maker's creditors. Hynix shares, meanwhile, closed up a little over a percent.
Kia Motors fell 1.7 percent, Hyundai Motor lost 2.7 percent and Samsung Heavy Industries tumbled 3.6 percent. Korean Air Line advanced 1.6 percent on expectations that travel demand would rise in the summer vacation season.
The New Zealand market rose modestly, helped by gains in heavyweight stocks like Telecom and Contact Energy. The benchmark NZX-50 closed up 0.6 percent. Telecom rose 2.4 percent after the country's biggest phone company announced the sale of the software unit of its Gen-I unit to India's Infosys for an undisclosed sum. Contact Energy climbed 3.6 percent after the utility completed its $351 million capital raising.
Argosy Property Trust gained 2.4 percent after institutional investors entered the fray to try to stop a $32.5 million payment to internalize its management. Air New Zealand fell 1.9 percent after the airline reportedly delayed plans to sell the technology for its "cuddle- class" seats to other airlines because of surging passenger demand for the lie-flat units. Fletcher Building lost 0.9 percent, Steel & Tube shed 0.4 percent, Rakon fell 1.9 percent, Cavalier Carpets declined 1.3 percent and Sanford ended down 2 percent. NZ Refining fell 1.2 percent after releasing operating statistics.
Elsewhere, India's Sensex was down half a percent after two days of gains. Indonesia's Jakarta Composite index slipped 0.4 percent, Malaysia's KLSE eased marginally, Singapore's Straits Times was down 0.4 percent and the Taiwan Weighted ended down 0.6 percent.
Crude prices fell to near $98 a barrel in late Singapore trading ahead of an OPEC meeting in Vienna to discuss output quotas.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.