FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
96,973,138Confirmed
2,074,354Deaths
69,514,440Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk

The major Asia-Pacific stock indexes finished mixed on Thursday as investors primarily followed Wall Street’s lead from the previous session. Global investors continued to feel the pain from the coronavirus pandemic while awaiting the release of the U.S. Weekly Jobless Claims report at 12:30 GMT and the start of U.S. earnings season later this month.

On Thursday, Japan’s Nikkei 225 Index settled at 17818.72, down 246.69 or -1.37%. Hong Kong’s Hang Seng Index finished at 23280.06, up 194.27 or +0.84% and South Korea’s KOSPI Index closed at 1724.86, up 39.40 or +2.34%.

In China, the Shanghai Index settled at 2780.64, up 46.12 or +1.69% and Australia’s S&P/ASX 200 Index finished at 5154.30, down 104.30 or -1.98%.

Asian Stock Valuations Drop to 15-Month Low in March:  Refinitiv Data

Asian equities valuations dropped to their lowest level since December 2018 at the end of March, following accelerated selling of regional shares by global investors on worries that extended factory shutdowns would lead to depressed profits this year.

The 12-month forward price-to-earnings (P/E) ratio, for MSCI’s broadcast index of Asia-Pacific shares, fell to 11.79 at the end-of-March, compared to 14.19 at the end of last year, according to Refinitiv data. By Wednesday’s close, the index was 23.5% lower from its January high of 175.13.

Many corporations are warning about a hit to their earnings this year as the virus outbreak has disrupted supply chains and business activities around the world.

Victor Carlstrom, chairman of investments firm Vinacossa Enterprises, said he would wait for some more weeks before buying Asian shares despite valuations being very attractive.

“If I had already sold, I would definitely not buy back before we have the facts,” Carlstrom said.

Advertisement

Banks Drag Australian Market Lower

The Australian share market finished lower on Thursday with most of the selling pressure coming from weakness in the major banks. Traders said the sell-off was fueled by comments from the International Monetary Fund (IMF), calling for governments to enact wartime measures to fight the coronavirus pandemic.

Australian shares slumped nearly 4 percent as the coronavirus death toll rose in the United States and New Zealand told banks to freeze dividend payouts.

Bank stocks started to fall after the Reserve Bank of New Zealand (RBNZ) said that local banks cannot redeem short-term corporate bonds or pay dividends on ordinary shares to investors, in order to preserve capital.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US