In China, first-quarter GDP growth came in at 5.3% year-on-year, surpassing forecasts, although March retail sales and industrial production fell short of expectations
Asia-Pacific markets experienced a significant drop across the board on Tuesday, influenced by global geopolitical concerns and robust economic data from China.
Asian stock markets experienced broad declines, mirroring the sell-off on Wall Street the previous day, according to TickMill market analyst Patrick Munnelly.
He said: This was driven by a surge in bond yields after a report revealed stronger-than-expected US retail sales growth in March.
The data raised concerns that the US Federal Reserve may delay reducing interest rates in June, he added.
Munnelly added that traders remained wary of geopolitical tensions in the Middle East, after most Asian markets closed Monday with lower closing prices.
In light of the latest data, CME Group’s FedWatch Tool currently suggests only a 21.6% probability of a quarter point rate reduction in June.
In China, first-quarter GDP growth came in at 5.3% year-on-year, surpassing forecasts, although March retail sales and industrial production fell short of expectations.
In Japan, both the Nikkei 225 and the Topix index recorded significant declines, dropping by 1.94% and 2.04% respectively, ending at 38,471.20 and 2,697.11.
Among the biggest decliners on Tokyo’s benchmark were J.Front Retailing, which dropped by 9.15%, Fujikura by 8.14%, and Isetan Mitsukoshi by 8.3%.
China’s stock markets also faced downward pressure, with the Shanghai Composite and Shenzhen Component indices dropping by 1.65% and 2.29% respectively, closing at 3,007.07 and 9,155.07.
Leading Shanghai’s declines was Guangzhou Fangbang Electronics, down by 11.98%, and Harbin Xinguang Optic Electronics, down by 11.81%.
In Hong Kong, the Hang Seng Index declined 2.12%, closing at 16,248.97.
Major firms such as Sunny Optical Technology Group, Sands China, and Xinyi Solar Holdings experienced declines ranging from 5.25% to 6.43%.
South Korea’s Kospi index mirrored the trend, dropping by 2.28%, closing at 2,609.63, with notable losers including Hyundai Electric & Energy Systems, down by 14.49%, and Taihan Electric Wire, down by 10.39%.
Australia’s S&P/ASX 200 index also witnessed a downturn, declining 1.81%, closing at 7,612.50, as Boss Energy and Liontown Resources recorded the biggest declines.
New Zealand’s S&P/NZX 50 index experienced a more modest decline of 0.94%, ending at 11,804.84.
KMD Brands and Arvida Group were among the firms registering losses, declining 3.57% and 3.54% respectively.
