Investing.com - Asian stock markets were mixed to lower on Thursday, as growing fears over an escalation of the debt crisis in the euro zone and disappointing Chinese trade data prompted investors to shun riskier assets.
During late Asian trade, Hong Kong's Hang Seng Index slumped 0.9%, Australia’s ASX/200 Index rose 0.5%, while Japan’s Nikkei 225 Index dipped 0.3%.
Investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
The leader of the leftist Syriza party, Alexis Tsipras gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Meanwhile, growing concerns over the health of Spain’s banking sector were in focus, after the Bank of Spain received an official request late Wednesday to take a stake in Bankia, the country’s fourth-largest lender.
The yield on Spanish 10-year bonds rose above 6% earlier, reflecting investor concerns over holding riskier assets.
Markets across the region also reacted badly to data showing Chinese exports and imports in April well below analysts expectations.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The report said that exports rose by 4.9% in April from a year earlier, below expectations for growth of 9.1% and slowing from 8.9% in March.
Imports grew by a modest 0.4% in April, significantly below expectations of 12.5% and slowing sharply from 5.3% in the previous month.
Normally a widening trade surplus is considered a good thing, but April’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
Shares in Hong Kong were set to close lower for a sixth day, weighed down by the downbeat Chinese trade data.
Raw material producers came under heavy selling pressure, tracking metal and oil prices lower. PetroChina shares slumped 2.7%, CNOOC declined 1.7%, while Jiangxi Copper Company fell 1.6%.
Shares in the financial sector were also lower, with China Construction Bank down 1.1% and index heavyweight HSBC Holdings dropping 1.5%.
Cathay Pacific was the biggest drag on the index, tumbling 6.1% after it warned of "disappointing" first-half earnings. It also said high fuel prices and an uncertain global economy are forcing the Hong Kong-based airline to cut costs.
Meanwhile, in Japan, the Nikkei trimmed losses after dropping below the key 9,000-level, as upbeat earnings from Toyota helped lift markets off the lows.
The country’s largest automaker saw shares gain 0.8% after the company said quarterly profit more than quadrupled. The Japanese automaker also made an upbeat forecast as it recovers from a sales plunge caused by the tsunami in Japan last year.
Also supporting the index were strong gains in Tokyo Electric Power Company, which surged 6.6% after the government approved plans to temporarily nationalize the debt-ridden utility.
Elsewhere, shares in Australia outperformed the region after official data showed that the nation’s employers added 15,500 jobs in April, defying expectations for a decline of 5,500. The nation’s unemployment rate dropped unexpectedly to 4.9% from 5.2%.
Looking ahead, the outlook for European stock markets was mildly upbeat, as stocks looked to set to recover from the previous day’s drop.
The EURO STOXX 50 futures pointed to a gain of 0.45%, France’s CAC 40 futures indicated a rise 0.35%, Germany's DAX futures climbed 0.7%, while London’s FTSE 100 futures added 0.35%.
Later in the day, France was to produce official data on industrial production, while the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was due to speak.
During late Asian trade, Hong Kong's Hang Seng Index slumped 0.9%, Australia’s ASX/200 Index rose 0.5%, while Japan’s Nikkei 225 Index dipped 0.3%.
Investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
The leader of the leftist Syriza party, Alexis Tsipras gave up his attempt to form a new government on Wednesday, putting Greek Socialist leader Evangelos Venizelos in a position to make a last-ditch attempt to form a government on Thursday.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Meanwhile, growing concerns over the health of Spain’s banking sector were in focus, after the Bank of Spain received an official request late Wednesday to take a stake in Bankia, the country’s fourth-largest lender.
The yield on Spanish 10-year bonds rose above 6% earlier, reflecting investor concerns over holding riskier assets.
Markets across the region also reacted badly to data showing Chinese exports and imports in April well below analysts expectations.
In a report, the Customs General Administration of China said the nation’s trade surplus widened to USD18.42 billion in April from USD5.35 in the previous month.
The report said that exports rose by 4.9% in April from a year earlier, below expectations for growth of 9.1% and slowing from 8.9% in March.
Imports grew by a modest 0.4% in April, significantly below expectations of 12.5% and slowing sharply from 5.3% in the previous month.
Normally a widening trade surplus is considered a good thing, but April’s result appeared more related to a weakness in imports, fuelling concerns over a slowdown in the world’s second largest economy.
Shares in Hong Kong were set to close lower for a sixth day, weighed down by the downbeat Chinese trade data.
Raw material producers came under heavy selling pressure, tracking metal and oil prices lower. PetroChina shares slumped 2.7%, CNOOC declined 1.7%, while Jiangxi Copper Company fell 1.6%.
Shares in the financial sector were also lower, with China Construction Bank down 1.1% and index heavyweight HSBC Holdings dropping 1.5%.
Cathay Pacific was the biggest drag on the index, tumbling 6.1% after it warned of "disappointing" first-half earnings. It also said high fuel prices and an uncertain global economy are forcing the Hong Kong-based airline to cut costs.
Meanwhile, in Japan, the Nikkei trimmed losses after dropping below the key 9,000-level, as upbeat earnings from Toyota helped lift markets off the lows.
The country’s largest automaker saw shares gain 0.8% after the company said quarterly profit more than quadrupled. The Japanese automaker also made an upbeat forecast as it recovers from a sales plunge caused by the tsunami in Japan last year.
Also supporting the index were strong gains in Tokyo Electric Power Company, which surged 6.6% after the government approved plans to temporarily nationalize the debt-ridden utility.
Elsewhere, shares in Australia outperformed the region after official data showed that the nation’s employers added 15,500 jobs in April, defying expectations for a decline of 5,500. The nation’s unemployment rate dropped unexpectedly to 4.9% from 5.2%.
Looking ahead, the outlook for European stock markets was mildly upbeat, as stocks looked to set to recover from the previous day’s drop.
The EURO STOXX 50 futures pointed to a gain of 0.45%, France’s CAC 40 futures indicated a rise 0.35%, Germany's DAX futures climbed 0.7%, while London’s FTSE 100 futures added 0.35%.
Later in the day, France was to produce official data on industrial production, while the U.S. was to release official data on trade balance, followed by government reports on unemployment claims and import prices. Federal Reserve Chairman Ben Bernanke was due to speak.