Asian Markets Mostly Lower As Wall Street Weakness Weighs
- Asian stocks wilted as their Wall Street counterparts had done the day before
- Only the ASX 200 stood out, with mining stocks there putting up a better show
- The US Dollar made gains on the Japanese Yen
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Asian stocks were mostly under pressure Wednesday following a weak Wall Street lead as tech stocks faded again and a critical vote to replace Obamacare was delayed.
The Nikkei 225 slipped 0.5%, with most other Asian markets in the red too, including those in Hong Kong and mainland China. The standout exception was Australia’s ASX 200. It gained 0.7% as mining stocks enjoyed firmer commodity prices and better expectations of Chinese demand.
Tuesday’s central bank speakers remained very much in focus. Federal Reserve Chair Janet Yellen gave equity investors pause in London when she said that some asset valuations were frothy. European Central Bank chief Mario Draghi sent the Euro higher when he said that he sees some room for paring back monetary stimulus.
On Wednesday, the US Dollar continued to gain against the Japanese Yen, but the Euro slipped back.
Asian data were sparse once again, with only Japanese small business confidence to attract investor attention. It came in exactly as expected for June, registering a small uptick on May’s showing.
Crude oil prices were steady but couldn’t build on four straight sessions of gains as worries about oversupply were underpinned by the latest US inventory data. Gold got a lift from weaker US stock prices which held through the Asian session.
There’s heavy US slant to the day’s economic numbers. The country’s advance goods trade balance is coming up, as are pending home-sales data. The Bank of Canada’s Governor Stephen Poloz will speak at a European Central Bank panel.
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--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.