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Asian stocks drop, weak economic figures weigh on sentiment

Global stocks

KOSPI slipped 0.2%, Hang Seng index slid 0.7%, Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined 0.6% and 0.4%, respectively, while ASX 200 gained 0.3%

Most Asian stocks dropped on Thursday, while weak economic figures from several regional economies also weighed on sentiment.

Regional markets took a weak lead-in from the US’ Wall Street, as heavyweight technology stocks declined amid pressure from high yields and as increased risk aversion saw investors lock-in recent profits.

Tech-heavy bourses were the worst performers in Asian trade.

KOSPI slipped 0.2%, while Hang Seng index slid 0.7%.

The KOSPI was also dented by softer-than-expected GDP data from South Korea, which showed the economy barely grew in the third quarter.

Still, there were some bright spots among Asian tech. South Korean memory chip giant SK Hynix Inc gained 1% after posting record third quarter earnings on strong demand from AI.

In Hong Kong, Horizon Robotics soared 28% in their first trading day after a $696 million IPO- the biggest Hong Kong IPO in 2024.

Chinese electric vehicle stocks were lower.

Nikkei 225 index gained slightly, while the TOPIX declined 0.2% after PMI data showed an unexpected decline in business activity in October. Both manufacturing and services PMIs dropped in the month.

The weak reading was largely attributed to soft economic conditions in the country, while private spending also seemed to be dropping after an initial rise earlier this year.

Sentiment towards Japanese stocks was on edge before a general election this Sunday, where the ruling Liberal Democratic Party could be pushed into seeking a coalition to retain power.

The BoJ is also set to meet next week.

Wider Asian markets moved in a flat-to-low range. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes declined 0.6% and 0.4%, respectively, slipping after four consecutive days of gains on optimism over more stimulus measures.

Australia’s ASX 200 gained 0.3% even as PMI data showed a sustained decline in manufacturing activity. But services activity rose at a slightly faster pace in October.

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