Asian Shares Fall Ahead of China Export Data
October 12 2015 - 8:39PM
Dow Jones News
By Chao Deng
Markets across Asia fell amid worries that Chinese export data
later Tuesday will add more evidence that the world's No. 2 economy
is stalling.
Japan's Nikkei Stock Average was down 0.7% at 18312.15,
Australia's S&P/ASX 200 was down 0.3% at 5222.20 and South
Korea's Kospi was off 0.1% at 2019.24.
While China's stock market has stabilized from its dramatic
swings of this summer's selloff, "the issue is that we may see
further weakness in the composition of exports," said Evan Lucas,
market strategist at brokerage IG.
Chinese authorities are due to report September exports data
later Tuesday, after reporting a 6.1% decline in exports on year in
August. Nomura projects that exports fell 8% in September from a
year earlier.
Chinese markets rallied Monday after the central bank announced
fresh stimulus to boost the economy and expectations build that
more could be on the way. Poor exports data could also spur
expectations for further easing.
In the past few months, concern about the spillover of China's
slowdown has shaken global markets and regional economies that rely
heavily on Chinese demand, sending emerging-market currencies and
commodities to multiyear lows.
In Australia, which counts China among its biggest trading
partners, the Australian dollar was down 0.2% against the U.S.
dollar in early Asia trade at $0.7340. It is also down from as high
as $0.7382 yesterday, which marked its strongest level since
August.
Meanwhile, the National Australia Bank's business confidence
index rose to 5 points in September from 1 point in August, as
firms welcomed the election of Malcolm Turnbull, a former
investment banker, as prime minister.
Brent crude oil prices were up 0.8% at $50.27 a barrel in Asia
trade after falling more than 5% overnight.
Prices in the U.S. also fell after the Organization of the
Petroleum Exporting Countries reported that its output rose to a
more-than-three-year high last month, pointing to supply glut.
Speculation is growing that the U.S. Federal Reserve could
maintain its easy policy stance given risks posed by weaker
overseas economies. Federal Reserve Gov. Lael Brainard issued a
call for caution about raising short-term interest rates. That has
been a positive for global stocks in recent weeks, as low interest
rates mean lower borrowing costs for companies.
The dollar edged lower against other currencies overnight, as
investors discounted the possibility that the U.S. will raise
interest rates in coming months. The Wall Street Journal Dollar
Index, which gauges the U.S. currency against a basket of 16
currencies, was last flat in early Asia trade.
U.S. stocks rose overnight. Health-care stocks pushed the Dow
Jones Industrials higher and to its longest winning streak in
almost a year.
Gold prices were down 0.22% at $1,161.80 a troy ounce. Prices
are down from a more than $1,163 reached late Monday in Asia,
marking the highest since July.
Investors also are looking to Chinese inflation data due for
release on Wednesday, according to the National Bureau of
Statistics of China.
Gregor Stuart Hunter contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
(END) Dow Jones Newswires
October 12, 2015 21:24 ET (01:24 GMT)
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