Investing.com - Asian stock markets retreated for a third day on Thursday, with shares in Japan coming under heavy selling pressure as traders continued to eye movements in the yen and in the Japanese government bond market.
The Nikkei is now down more than 20% from its May 22 peak, meeting the definition of a bear market.
During late Asian trade, Hong Kong's Hang Seng Index was down 3%, Australia’s ASX/200 Index ended 0.6% lower, while Japan’s Nikkei 225 Index tumbled 6.4%.
In Tokyo, the Nikkei sold off as the yen strengthened sharply against the U.S. dollar on Wednesday, with USD/JPY falling to hit a session low of 93.78, compared to the previous day’s high of 97.01.
Exporters declined after the yen firmed, with Toyota and Honda slumping 4.6% and 4.4% respectively, while Sony and Sharp retreated 3.5% and 6.5% apiece.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Index heavyweight Fast Retailing lost 8.7%.
Japanese megabanks were also lower, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group falling 4.5%, while Sumitomo Mitsui Financial Group and Nomura Holdings lost 4% and 4.9% respectively.
Meanwhile, in Australia, the benchmark ASX/200 Index ended lower as stronger than expected employment data reduced expectations the Reserve Bank of Australia could lower rates again the near-term.
Data released earlier in the session showed that the nation’s unemployment rate fell unexpectedly to 5.5% last month from 5.6% in April. The economy added 1,100 jobs in May, defying expectations for a decline of 9,800.
Miners retreated amid concerns over a slowdown in global demand for raw materials. Rio Tinto and BHP Billiton lost 2.4% and 2.6% respectively, while Fortescue Metals Group saw shares drop 3.4%.
Elsewhere, in Hong Kong, the Hang Seng was lower as the market reopened following the previous day’s holiday.
Jiangxi Copper Company declined 1.5%, Aluminum Corporation of China fell 3.2%, while oil producer PetroChina tumbled 4.2%.
Looking ahead, European stock market futures pointed to a sharply lower open amid fears central banks around the world will refrain from adding more economic stimulus.
The EURO STOXX 50 futures pointed to a loss of 1.4% at the open, France’s CAC 40 futures dropped 1.4%, London’s FTSE 100 futures indicated a loss of 1.3%, while Germany's DAX futures pointed to a decline of 1.5% at the open.
The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.
The Nikkei is now down more than 20% from its May 22 peak, meeting the definition of a bear market.
During late Asian trade, Hong Kong's Hang Seng Index was down 3%, Australia’s ASX/200 Index ended 0.6% lower, while Japan’s Nikkei 225 Index tumbled 6.4%.
In Tokyo, the Nikkei sold off as the yen strengthened sharply against the U.S. dollar on Wednesday, with USD/JPY falling to hit a session low of 93.78, compared to the previous day’s high of 97.01.
Exporters declined after the yen firmed, with Toyota and Honda slumping 4.6% and 4.4% respectively, while Sony and Sharp retreated 3.5% and 6.5% apiece.
A stronger yen reduces the value of overseas income at Japanese companies when repatriated, dampening the outlook for export earnings.
Index heavyweight Fast Retailing lost 8.7%.
Japanese megabanks were also lower, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group falling 4.5%, while Sumitomo Mitsui Financial Group and Nomura Holdings lost 4% and 4.9% respectively.
Meanwhile, in Australia, the benchmark ASX/200 Index ended lower as stronger than expected employment data reduced expectations the Reserve Bank of Australia could lower rates again the near-term.
Data released earlier in the session showed that the nation’s unemployment rate fell unexpectedly to 5.5% last month from 5.6% in April. The economy added 1,100 jobs in May, defying expectations for a decline of 9,800.
Miners retreated amid concerns over a slowdown in global demand for raw materials. Rio Tinto and BHP Billiton lost 2.4% and 2.6% respectively, while Fortescue Metals Group saw shares drop 3.4%.
Elsewhere, in Hong Kong, the Hang Seng was lower as the market reopened following the previous day’s holiday.
Jiangxi Copper Company declined 1.5%, Aluminum Corporation of China fell 3.2%, while oil producer PetroChina tumbled 4.2%.
Looking ahead, European stock market futures pointed to a sharply lower open amid fears central banks around the world will refrain from adding more economic stimulus.
The EURO STOXX 50 futures pointed to a loss of 1.4% at the open, France’s CAC 40 futures dropped 1.4%, London’s FTSE 100 futures indicated a loss of 1.3%, while Germany's DAX futures pointed to a decline of 1.5% at the open.
The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.