Markets in Asia on the red; Poor demand in China affected mining stocks

Asian-Indexes

Most of the indices in Asia started on the negative territory on Wednesday’s opening bell, following a good performance across the markets in the United States. Global investors are currently keeping an eye on fresh earnings report from corporate companies.

Japanese benchmark Nikkei 225 index dropped more than 0.45 percent, reversing its gains from yesterday as it reached a 26-year high on the previous day. The falling index came in as the Japanese yen strengthened. Major companies from the manufacturing, auto, and financial sector are the leading decliners. Still, retail stocks from the nation managed to rise by 0.55 percent.

Across the Korean Strait, the Kospi index slumped as low as 0.13 percent. Major tech companies, however, finished the day mixed. LG electronics lost more than 2.28 percent in shares, Samsung electronics jumped by 0.2 percent and its rival chipmaker SK Hynix edged up by 1.96 percent. The financial and auto sector was the poor performers as shares of Hyundai Motors were 1.86 percent.

Meanwhile, the ASX 200 index in Australia didn’t follow the trend as it inched up by 0.3 percent in early trade. It was somehow lifted by the good performance from its financial sector, with Westpac adding more than 0.62 percent in shares.

However, Australian mining companies were in the red due to the lower base of metal prices overnight after released figures have indicated a poor demand in China. BHP fell about 0.42 percent and Rio Tinto lost 0.75 percent in shares.

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