Asian equity markets failed to come out of the declining momentum and slipped to lower levels on Wednesday as investors took to risk aversion from riskier asset classes like equities lacking any catalyst to open fresh positions. Market participants remained largely influenced by overnight decline on Wall Street where markets slipped lower amid growing concerns over slowing growth in world’s second largest economy - China weighed on investors’ morale, with sharp losses in the mining and steel sectors leading declines. Also mixed signs of housing data weighed on the sentiments. Reports showed that US February housing starts fell to a 698,000 annual pace from an upwardly revised 706,000 in the previous month while in a positive development, the US retailers announced a higher than expected earnings forecast for the year.
Most of the Asian equity indices made a soft start and barring the Malaysian and Taiwanese market, all are trading lower. Coming from a holiday, the benchmark in Tokyo failed to extend the five session winning momentum and slipped lower from the 8-1/2 month high levels as export oriented stocks slipped lower after yen gained strength against US dollar ahead of the release its monthly economic assessment later in the day.
Shanghai Composite declined 10.58 points or 0.45% to 2,366.26, Hang Seng shed 52.84 points or 0.25% to 20,835.40, Jakarta Composite eased 2.26 points or 0.06% to 4,019.90, Nikkei 225 slipped 21.36 points or 0.21% to 10,120.63, Straits Times fell 5.95 points or 0.20% to 2,996.78 and Seoul Composite dropped 12.18 points or 0.60% to 2,029.97.
On the other hand KLSE Composite gained 0.31 points or 0.02% to 1,577.93 and Taiwan Weighted added 3.63 points or 0.05% to 7,976.33.
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