The stock markets across the Asia-Pacific region were trading sharply lower on Thursday after Wall Street plunged overnight, shrugging off the mood of optimism surrounding Barack Obama's election, as economic data revealed deep cuts in employment by private employers and a contraction in services sector activity in October. The U.S. dollar fell following the release of the data and oil prices dropped to $65 a barrel in the Asian session on signs of slowing demand.
U.S. stocks plunged Wednesday as investors locked in profits from Tuesday's rally and reacted to some disappointing economic data and corporate earnings reports. The Dow closed down 486 points or 5.1% at 9,139, the Nasdaq plunged 98 points or 5.5% to 1,681, and the S&P 500 shed 53 points or 5.3% to 952.
Crude oil prices fell on Wednesday amid worries about slumping demand. Light, sweet crude for December delivery dropped $5.2 to settle at $65.3 a barrel on the New York Mercantile Exchange. On the supply front, U.S. crude inventories remained stable after rising for the previous five weeks, while gasoline stockpiles rose unexpectedly, according to government data released Wednesday.
In currency trading, the U.S. dollar was quoted in the upper 97-yen level in early Tokyo deals, down from the mid 99-yen levels late Wednesday in Tokyo. The South Korean won was quoted at 1,316.5 a dollar compared to Wednesday's close of 1,266.0 a dollar. The Australian dollar opened marginally higher at US$0.6922-0.6928 and the kiwi was little changed at US$0.6044 in early local trade.
The Japanese market was trading sharply lower after posting strong gains in the previous two trading sessions. Additionally, a stronger yen hurt exporters. At 7.28 P.M. ET, the benchmark Nikkei 225 Index was losing 480.91 points or 5.05% to 9,040.33 and the broader Topix Index of all First Section Issues was down 45.54 points to 921.37.
On the economic front, the Bank of Japan is scheduled to release the minutes from its monetary policy meeting on October 6 and 7. The Bank of Japan kept interest rates on hold at 0.50% for the 23rd consecutive month, although they pared the rate by 20 basis points to 0.30% in a subsequent meeting last week.
Japan is also set to announce preliminary September numbers for its leading and coincident indexes. The leading index is expected to reflect a score of 89.2, up slightly from 89.0 in August. The coincident index is seen at 100.8, up slightly from 100.6 in the previous month.
Among banks, Mitsubishi UFJ lost 6.73%, Resona Holdings dropped 5.80%, Mizuho Financial slid 6.87% and Sumitomo Mitsui declined 1.68%.
Among export-oriented stocks, Sony plunged 6.98%, Nikon plummeted 8.78% and Canon plumetted 9.82%. Automaker Toyota plunged 6.59%, Honda shed 5.46% and Mazda dropped 6.30%. Toyota Motor is slated to report its financial results today.
In the tech space, Advantest dropped 5.13%, Fanuc tumbled 6.43% and Kyocera plunged 6.26%.
In the oil sector, Inpex Holdings dipped 8.75%, Showa Shell lost 5.86% and Nippon Oil dropped 5.66%. Trading house Marubeni slid 6.79%, Itochu tumbled 5.54% and Sojitz shed 5.62%.
The South Korean stock market was trading sharply lower, snapping a five-day winning streak. Wall Street's plunge overnight prompted investors to lock in profits from recent sharp rise. At 8:21 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was down 59.1 points or 5.0% at 1,122.4.
On the economic front, South Korea's core inflation grew at a faster pace than other advanced nations as a sharp decline in its currency value increased overall import prices. According to a report compiled by the Organization for Economic Cooperation & Development, South Korea's core inflation, excluding volatile food and oil prices, jumped 4.1% in September from a year earlier. The figure compared with the average of 2.4% for OECD member countries.
In the tech space, Hynix Semiconductors fell 1.9%, market heavyweight Samsung Electronics lost 3.1%, LG Electronics gave away 3.0%, and LG Display dropped 3.8%.
Automaker Hyundai Motor plunged 6.6% and top steelmaker POSCO plummeted 7.1%.
In the financial sector, Shinhan Financial Group tumbled 8.0%, Woori Finance sank 7.3%, and KB Financial Group slumped 9.5%. Mirae Assets & Securities shed 7.3%.
The Australian stock market was trading sharply lower as resources stocks fell following weaker commodities prices. At 8:16 p.m. ET, the benchmark S&P/ASX 200 index was losing 148 points or 3.41% to 4,189, reversing Wednesday's nearly 3% gains. The broader All Ordinaries index was falling 144 points or 3.36% to 4,143.
On the economic front, data released by the Australian Bureau of Statistics showed that the total number of employed persons in Australia soared by 34,300 to 10.77 million from the previous month. Full-time employment was down 9,200 to 7.69 million. The unemployment rate in Australia held steady in October at 4.3% on year, while participation rate also remained steady at 65.2%. Unemployment increased by 7,000 to 487 thousand.
Among banking stocks, Commonwealth Bank of Australia fell 2.24%, ANZ Banking Group dropped 7.95%, and National Australia Bank lost 3.67%. Westpac was down 2.46%, St. George bank slid 1.80%, and investment bank Macquarie Group fell 5.80%.
In the resources sector, index leader BHP Billiton dropped 6.93%, and Rio Tinto plunged 8.31%. Gold miners were weaker, after gold closed lower on Wednesday. Sino Gold plunged 8.26%, Lihir Gold dropped 7.27% and Newcrest Mining fell 2.22%.
Among energy stocks, Oil Search lost 1.41%, Woodside dropped 5.53% and Santos fell 3.56%.
In the retail sector, David Jones fell 3.82%, giant retailer Woolworths lost 1.50%, and Coles' owner Wesfarmers dropped 2.54%.
Foster's Group rose 3.59% after it said that global brewer Colorado-based Molson Coors Brewing Co. has bought a substantial 5% stake in the company, leading to speculation about a possible takeover.
News Corp. plunged nearly 19% after it posted a sharper-than-expected 30% drop in quarterly profit to A$761 million, as advertising revenue declined at its local television stations. The company has also cut its full-year outlook.
Property trust Mirvac Group soared nearly 20% after it completed a $417 million institutional capital raising, with another $83 million to come through a retail offering. However, it halved its earnings forecast for fiscal 2009.
The New Zealand stock market opened sharply lower, with the benchmark NZX 50 index losing 52.35 points or 1.81% to 2,833.75 shortly after the market opened for the day, while the broader NZX All Capital Index was declining 41.84 points or 1.44% to 2,873.67.
In the economic data calendar, the New Zealand investors get to look at the third quarter employment data, which is due at 10.45am.
In the early trading on the New Zealand stock market on Wednesday, the country's top ranked share Telecom dropped 1.69%, while the second ranked Contact Energy fell 2.30%. Fletcher Building, the third best stock, plunged 3.85%.
In the retail sector Hallenstein Glasson gave up 0.84%, while jewelry retailer Michael Hill International fell 1.43% and Pumpkin Patch tumbled 4.63%. The Warehouse remained unchanged.
In the energy sector Vector eased 0.50%, while TrustPower lost 1.32% in the day's early trading.
Among the dual listed issues AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged on Thursday morning.
Other Asian markets
Hong Kong's Hang Seng index was down 6.2% at 13,916; China's Shanghai composite index was down 3.0% at 1,707; Singapore's Straits Times index was down 4.6% at 1,782; Taiwan's weighted index was down 5.0% at 4,729; Malaysia's KLCI was down 20.4 points at 894; and Indonesia's Jakarta composite index was down 4.6% at 1,303.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.