Sydney, Aug. 3, (dpa-AFX/GNA) – Asian stocks ended mostly lower on Thursday to extend losses from the previous session as investors fretted about mounting debt in the US and awaited cues from Friday’s US jobs report, which will provide further information on the monetary policy of the US Federal Reserve.
Chinese shares rose on late buying after a private survey showed services sector activity in the country expanded at a stronger pace in July compared to June.
The benchmark Shanghai Composite index inched up 0.58% to 3,280.46 despite Morgan Stanley reducing its rating on Chinese stocks. Hong Kong’s Hang Seng ended 0.49% lower at 19,420.87.
Japanese shares tumbled and the 10-year Japanese government yield hit its highest level in over nine years, as strong private sector payrolls data released overnight spurred fresh concerns about the outlook for US interest rates.
The Nikkei average slumped 1.68% to 32,159.28 while the broader Topix index settled 1.45% lower at 2,268.35.
Heavyweight semiconductor stocks led loses, with Advantest, Tokyo Electron and Screen Holdings falling between 1.1% and 2.7%. Marine transportation firm Kawasaki Kisen jumped 4% on share buyback news.
Seoul stocks declined amid selling by foreign and institutional investors. The Kospi average dropped 0.42% to 2,605.39.
Australian markets fell after a slew of data showed activity in the country’s services sector contracted in July, retail sales volumes recorded a third consecutive quarterly fall in the second quarter and trade surplus remained steady in June.
The benchmark S&P ASX 200 ended down 0.58% at 7,311.70 while the broader All Ordinaries index closed 0.61% lower at 7,522.30.
While tech stocks followed their US peers lower, miners fell on concerns about the health of China’s property sector.
Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index slipped 0.21% to close at 11,936.62.
US stocks and bonds suffered a wave of selling overnight after a surprise downgrade of the country’s debt rating by Fitch, citing fiscal deterioration and repeated debt ceiling standoffs.
Also, data showed US private sector employment jumped by much more than expected in July, reviving Fed rate hike bets.
The tech-heavy Nasdaq Composite plunged 2.2% while the Dow lost 1% and the S&P 500 gave up 1.4%.
GNA