Most Asian stock markets fell for a sixth consecutive session on Thursday, as investors continued to fret about the global economic outlook.
After Bernanke's downbeat comments on economic prospects, the Fed's Beige Book regional survey released Wednesday afternoon painted a mixed picture of the U.S. economy, with economic activity dropping off in several regions of the United States despite continuing expansion of the broader economy.
Copper prices steadied in London after losing a percent a day before, while the U.S. dollar was broadly lower against its major counterparts ahead of the much awaited rate announcement by the European Central Bank. Crude prices rose to above $101 a barrel after OPEC unexpectedly left its production levels unchanged and a U.S. government report showed crude supplies dropped the most since December.
Japan's Nikkei index rose 0.2 percent, as institutional investors lapped up oversold stocks attracted by cheap valuations, with many of them trading below book value. However, the broader Topix index shed 0.2 percent hurt by lingering economic uncertainties.
Heavyweight Fast Retailing rose 0.9 percent and Nitori Holdings gained 1.4 percent after data showed Japanese consumer confidence improved in May. Nintendo tumbled 4.5 percent after a 5.7 percent slump in the previous session, as investors remain skeptical that its newly unveiled Wii game console, dubbed Wii U, will be sufficiently groundbreaking to offset its recent sales slump. Shares of Tokyo Electric Power, the embattled Japanese utility, plunged 20 percent to a record low before recouping most of its loss to end 4 percent lower.
Japan's gross domestic product contracted a revised 3.5 percent annualized in the first quarter of 2011, the Cabinet Office said - missing forecasts for a decline of 3.0 percent following last month's preliminary reading for a 3.7 percent fall. On a quarterly basis, GDP was unchanged at -0.9 percent - again missing forecasts for a decline of 0.8 percent.
China's Shanghai Composite index snapped three consecutive days of gains to end about 1.7 percent lower, as speculation spread that the People's bank of China will raise interest rates again on Friday at the earliest. Heavyweight China Merchants Bank dropped a little over 2 percent to its lowest closing in over two months. Property developer Vanke fell 2.5 percent. Hong Kong's Hang Seng index eased 0.2 percent, extending losses for the sixth straight day.
Most analysts expect that data next week will show China's consumer price index rose 5.5 percent in May from a earlier earlier, way above the government's target of 4 percent, which provides ground for the central bank to continue rate tightening.
The Australian market closed modestly higher, with oversold financial stocks leading the gains. Both the S&P/ASX200 and the Ordinaries index closed up about 0.3 percent each. Commonwealth Bank rose 0.6 percent and ANZ and NAB added about 0.8 percent each, while Westpac advanced 1.2 percent. Resource stocks closed mixed, with BHP Billiton rising 0.4 percent and Rio Tinto adding 0.2 percent, while Fortescue closed unchanged.
Gold miner Newcrest Mining shed 0.7 percent after cutting gold output guidance following a power outage at its Lihir mine in Papua New Guinea. In the energy sector, Woodside slipped 0.4 percent, but Oil Search added half a percent and Santos gained 1.7 percent. National carrier Qantas lost 2.3 percent after it received interim approval from the competition watchdog for a proposed joint venture agreement with American Airlines.
On the economic front, the unemployment rate in Australia came in at a seasonally adjusted 4.9 percent in May, the Australian Bureau of Statistics said on Thursday, matching both forecasts and the previous month's reading.
However, the number of employed Australians missed estimates by a mile. Australia added just 7,800 total jobs in May to 11,440,500 - well shy of expectations for 25,000 new jobs following the loss of 22,100 jobs in April.
New Zeland's benchmark fell a little over a percent to its lowest level in six weeks after the central bank signaled that a gradual increase in interest rates is required to offset a potential rise in crore inflation. While keeping the official cash rate unchanged at 2.5 percent as expected, governor Alan Bollard said the the pace and timing of any increases will be guided by the speed of the economic recovery.
"For now, it remains appropriate for monetary policy to be supportive given the current softness of the economy and the inflated level of the New Zealand dollar," he said in a statement accompanying the decision.
Contact Energy led the decliners, falling 2.7 percent, after the utility completed its $351 million capital raising. Fisher & Paykel Appliances Holdings, the whiteware manufacturer, lost 2.3 percent, weighed by the high kiwi dollar.
Construction firm Fletcher Building shed 2.1 percent, clothing and equipment retailer Kathmandu Holdings eased about half a percent and heavyweight Telecom ended down 1.3 percent. Methven, the tapware manufacturer, climbed 4.7 percent after the company said it expects to recover $460,000 by the end of June from its largest British customer, Focus DIY, which is in administration.
South Korea's Kospi average closed 0.6 percent lower as the expiry of options and futures contracts and persisting worries about the economic outlook triggered hefty foreign selling. The local currency lost ground against the U.S. dollar. Auto stocks bore the brunt of the selling, with Hyundai Motor dropping 2.2 percent on a report that it was looking to take a 15 percent stake in Hynix. Shares of the chipmaker ended down 0.7 percent. Korean Air Line rose 1.4 percent on the buzz of capital reduction.
Elsewhere, India's Sensex was last trading down 0.1 percent in volatile trading, while Malaysia's KLSE rose 0.2 percent and Singapore's Straits Times edged up marginally. Indonesia's Jakarta Composite slipped 0.4 percent and the Taiwan Weighted eased marginally.
U.S. stocks extended a recent downward move overnight, with the major averages once again falling to their worst closing levels in over two months, as growth concerns continued to weigh on sentiment. The Dow edged down 0.2 percent, the Nasdaq lost a percent and the S&P 500 slid 0.4 percent.
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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.