Asian markets open for trading on Wednesday ended in negative territory taking cues from Wall Street where the major averages ended lower amid fresh concerns about the health of European banks following flaws in recent bank stress tests. Resource stocks and banks were the major declines in the market amid concerns that the new government in Australia might revisit the resources tax. The strengthening of the yen against the dollar sank Japanese markets lower while the other markets also ended in negative territory.
In Japan, the benchmark Nikkei 225 Index declined 201.40 points, or 2.18%, to 9,025.while the broader Topix index of all First Section issues was down 13.93 points, or 1.67% to 821.
On the economic front, a report released by the Cabinet Office revealed that core machinery orders jumped a seasonally adjusted 8.8% in July compared to the previous month. That was sharply higher than analyst expectations for a 2.0% monthly increase following the 1.6% gain in June. Government orders eased 1.3% on month, while overseas orders added 2.6% and agency orders fell 1.8%. Private sector orders collected 6.4 percent on month. The report further noted that, on an annual basis, core machinery orders surged 15.9% - again topping forecasts for an 8.1% gain after shedding 2.2% in the previous month.
A report released by the Ministry of Finance revealed that Japan posted a current account surplus of 1.6759 trillion yen in July, up 26.1% on year. That beat expectations for a surplus of 1.534 trillion yen after showing a surplus of 1.0471 trillion yen in June. The report further added that Imports rose 15.7% on year to 4.747 trillion yen, while exports added an annual 24.7% to 5.663 trillion yen. The trade surplus was 916.1 billion yen, up 110.0% on year.
Light sweet crude oil futures for October delivery ended at $73.89 a barrel in electronic trading, down $0.20 per barrel from previous close at $74.09 a barrel in New York on Tuesday.
All the 33 sectors in the index witnessed declines. Traders adopted a cautious approach and remained in the sidelines awaiting more cues on global economic recovery. The major decliners included stocks of consumer finance, glass and ceramics and securities apart from exporters..
In Australia, the benchmark S&P/ASX200 Index eclined 36.00 points, or 0.79%, and closed at 4,537 points, while the All-Ordinaries Index ended at 4,578, representing a loss of 34.70 points, or 0.75%.
On the economic front, a statement released by the Australian Bureau of Statistics revealed that the value of home loan commitments in the country increased 0.7% in July from June. The Bureau further noted that the number of loan commitments for new, owner-occupied dwellings increased a seasonally adjusted 1.7%. Commitments for purchases of new dwellings increased in number by 1.5%. The value of commitments for investment housing declined 2.3%.
Banks led the decline following weak cues from European and US markets in the previous session. ANZ Bank slipped 1.14%, Commonwealth Bank of Australia shed 1.09%, National Australia Bank lost 1.84% and Westpac Banking was down 1.43%. Investment banker Macquarie Group declined 1.25%.
Mining and metal stocks also ended in negative territory. BHP Billiton shed 1.34%, Rio Tinto slipped 1.22%, Fortescue Metals lost 1.01%, Gindalbie Metals fell 1.08%, Macarthur Coal was down 2.01%, Murchison Metals plunged 2.71%, and Mincor Resources declined 1.39%.
Oil related stocks also ended weaker. Woodside Petroleum declined 1.43%, Santos Ltd slipped 0.58%, Oil Search Ltd shed 0.67% and Origin Energy was down 1.48%.
The Indian market cut its early loss and ended a volatile session on a flat note Wednesday, thanks to some selective buying in telecom, information technology, realty, healthcare and metal stocks. The 30-share BSE Sensex swung in both directions before ending up 22 points or 0.12% at 18,667, with 18 of its components edging higher. After witnessing wild swings, the broader Nifty closed almost flat at 5,608.
Among the other major markets open for trading, China's Shanghai Composite Index slipped 3.07 points, or 0.11%, to 2,695, Singapore's Strait Times Index declined 24.67 points, or 0.81%, to 3,011, and Taiwan's Weighted Index ended in negative territory with a loss of 33.09 points, or 0.42%, at 7,851. The market in Indonesia was closed for a public holiday.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.