Asian Stock Markets Close Lower on Economic Worries

Asian stock markets were mostly lower on September 10 as economic data from Japan and China made investors cautious.

After surging almost 8% on September 9, Japan’s Nikkei 225 index closed down 2.5% at 18,299.62, among Asia’s big losers.

Worries about a slowdown China and the impact of a US interest rate hike also dented investors’ confidence.

Analysts said losses were to be expected considering Wednesday’s significant gains – particularly in Japan.

Core machinery orders in Japan, which are a key indicator of capital expenditure, fell by 3.6% in July compared with June.

The renewed decline suggested that business investment may fall yet again this quarter, economists said.

In Australia, the S&P/ASX 200 closed down 2.4% at 5,098.40, following Wall Street lower and after two sessions of gains.

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The Australian dollar fell together with the New Zealand dollar on Thursday after New Zealand’s central bank cut interest rates to 2.75% and said it may introduce further easing measures to boost its flagging economy.

In China, the benchmark Shanghai Composite ended down 1.4% to 3,197.89, while Hong Kong’s Hang Seng lost 2.6% to 21,562.5 points.

Official figures released on September 10 showed China’s consumer price index (CPI) unexpectedly rose to 2% in August from a year ago marking a one-year high.

The rise was due to higher food prices. Pork prices, which weigh heavily on consumer prices in China, rose from 16.7% last year to 19.6% in August.

China’s producer price index (PPI) fell 5.9% – marking its 42nd consecutive month of declines – and the biggest drop since 2009.

The one bright spot in Asia was South Korea’s Kospi which closed up 0.7% to 1,947.30 points.