Asian Market Review

Asian markets are tumbling following the overnight release of weaker than expected employment data by private payroll firm ADP, and in response to the U.S. hitting several European Union products with steep tariffs. Markets in mainland China remain closed today in observance of a public holiday, and South Korean markets are also closed in observance of a national holiday.

In Japan the Nikkei has dropped 2.1% in early trade as investors there are worried that an already slowing global economy will be dragged even lower by trade differences between the U.S. and the EU. Strength in the Yen, which is rallying on haven demand, is also causing weakness for Japanese multi-national equities.

In Australia losses are even greater as the S&P/ASX 200 trades down by 2.4% heading into the afternoon. Heavy losses from the big four banks are weighing the market down for a second day in a row. ANZ Bank has lost 3%, while NAD trades 3.1% lower, Commonwealth Bank has a 2.1% loss, and Westpac Bank is sliding 2.3% lower. Major miners are also diving lower on growth concerns, with BHP 2.5% lower and Rio Tinto falling 3.1%.

In Hong Kong the Hang Seng has opened to an 0.7% loss as protests have begun anew in the wake of a teenage student being shot by Hong Kong police on Tuesday.  Taiwan’s Taiex is also trading lower by 0.8% in early morning trade.

Southeast Asian markets are lower as well, with the Straits Times in Singapore losing 0.8% and the KLCI in Malaysia retreating 0.6%.