TOKYO (AP) — Asian stock markets were mostly higher Wednesday as Japan gained on stimulus hopes but a late sell-off of heavy industrials in China pushed the Shanghai benchmark lower.
KEEPING SCORE: Japan’s Nikkei 225 gained 1.9 percent to 18,554.28 and South Korea’s Kospi was up 0.2 percent at 2,042.98. But the Shanghai Composite Index dropped 3.1 percent to 3,320.68. Australia’s S&P/ASX 200 rose 0.2 percent to 5,248.30. Hong Kong’s market was closed for a public holiday. Taiwan’s benchmark fell while Southeast Asian stock markets rose.
CHINA SELL-OFF: After spending much of the day in positive territory, the Shanghai index took a hit from heavy selling of heavy industrials such as Zoomlion Heavy Industry Science and Technology Co., which has forecast weaker earnings due to slack demand. Zoomlion fell 4.4 percent while rival XCMG Construction Machinery Co. tumbled 7.9 percent.
JAPAN TRADE: Investors took an upbeat stance on disappointing trade figures for September, when weak exports led to a 114.48 billion yen ($955 million) trade deficit in September. A 3.5 percent year-on-year drop in exports to China underscored the challenges to Japan’s own recovery. But investors may be counting on moves by the central bank to counter those trends with more stimulus measures.
THE QUOTE: The trade data were a “bad news is good news” moment for the Nikkei, said Angus Nicholson of IG in a market commentary. But given recent upbeat comments by central bank officials and the finance minister, and the fact that the BOJ already controls most of the market in the government securities it has been buying to pump money into the economy, “The big question is whether the Bank of Japan will do anything about it during its meeting next week.”
WALL STREET: U.S. stocks snapped a three-day winning streak Tuesday as weak company earnings and outlooks weighed on the market. The Dow Jones industrial average lost 0.1 percent to 17,217.11 and the Standard & Poor’s 500 fell 0.1 percent, to 2,030.77.
ENERGY: Benchmark U.S. crude fell 44 cents to $45.85 a barrel in electronic trading on the New York Mercantile Exchange. It gained 1 cent to $46.29 on Tuesday. Brent crude, used to price international oils, fell 43 cents to $48.28 a barrel in London.
CURRENCIES: The dollar fell to 119.83 yen from 119.84 yen in the previous session. The euro rose to $1.1354 from $1.1352.
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