The Asian markets are showing a weak trend on Friday, on renewed geopolitical worries after a report that North Korea could respond to fresh sanctions with a hydrogen bomb in the Pacific. A news report quoted North Korea's foreign minister as saying that his country may conduct a hydrogen bomb test in the Pacific Ocean. Hong Kong shares fell as S&P Global Ratings cut the city’s sovereign rating a day after it downgraded China. The financial hub’s long-term issuer credit rating was lowered to AA+ from AAA. S&P said that we are lowering the rating on Hong Kong to reflect potential spillover risks to the SAR should deleveraging in China prove to be more disruptive than we currently expect. The Japanese market too was lower as a stronger yen weighed on exporters’ shares. The markets in Malaysia are closed for the Islamic New Year.
Hang Seng slumped by 235.69 points or 0.84% to 27,874.64, Taiwan Weighted was down by 113.52 points or 1.07% to 10,464.92, Nikkei 225 was lower by 67.85 points or 0.33% to 20,279.63, KOSPI Index lost19.38 points or 0.81% to 2,387.12, Shanghai Composite decreased by 16.09 points or 0.48% to 3,341.72 and Jakarta Composite shed 7.67 points or 0.13% to 5,898.90.