Asia-Pacific markets experienced a downturn on Wednesday as investors reacted to the latest trade data from Japan alongside political developments within the country. In September, Japan’s exports broke a four-month streak of declines, rising 4.2% year-on-year, driven mainly by a strong demand from Asian countries. However, this growth fell short of analysts’ expectations, which had anticipated a 4.6% increase according to a Reuters poll.
The new government, led by Prime Minister Sanae Takaichi, was sworn in just a day prior. Takaichi’s cabinet includes prominent figures such as Shinjiro Koizumi, who has taken on the role of defense minister, and Satsuki Katayama, making history as Japan’s first female finance minister.
In response to the economic data and political shifts, the Nikkei 225 index in Japan fell 0.81%, with the Topix index remaining mostly unchanged. Notably, shares of SoftBank Group plummeted over 10%, extending a previous day’s loss. This decline followed a brief surge earlier in the week when shares had gained 8.5%. The Nikkei index had even peaked at an intraday record of 49,945.95 during trading on Tuesday, just before the news of Takaichi’s parliamentary victory.
Meanwhile, other regional markets in South Korea saw minor declines, with the Kospi index down 0.15% and the Kosdaq slightly lower by 0.13%. In a notable development, shares of LG Chem surged up to 10% following a call from Palliser Capital for the company to undergo board revamping and initiate a share buyback.
Australia’s S&P/ASX 200 index also faced a drop of 0.81%, pulling back from earlier gains attributed to a rally in rare earth stocks due to a new U.S.-Australia critical minerals agreement. The Hang Seng index in Hong Kong slid by 0.83%, despite a boost for Pop Mart, a maker of collectible dolls, whose shares rose about 6% on the back of strong third-quarter earnings.
On the mainland, the CSI 300 opened 0.69% lower. Indian markets remained closed for a holiday, leaving the trading landscape dominated by other regional players.
Turning to the overnight performance in the United States, the Dow Jones Industrial Average reached a new closing record, buoyed by robust earnings from notable companies like Coca-Cola and 3M. The Dow gained 0.47%, closing at 46,924.74, and briefly surpassed the 47,000 mark during trading hours. In contrast, the S&P 500 remained relatively flat, while the tech-heavy Nasdaq Composite faced a slight decline of 0.16%, closing at 22,953.67.
