Market Update
Asian markets were markedly lower Monday with Tokyo's Nikkei hitting a two-month low after data showed record annual trade deficit in Japan.
The Nikkei fell 2.5%. The Shanghai Composite gave up 1% while the Hang Seng dropped 2.1% while the Sensex shed 2.0%
Australian markets were closed for a holiday.
Data showed Japan logging a third straight year of trade deficit in 2013, widening to 11.5 trillion yen, almost double the previous year’s number. Exports rose by 15.3% while imports rose 24.7%.
On Friday last week, U.S. stocks ended lower as part of a global sell-off after weak Chinese manufacturing data sparked concern of a cooling in emerging markets.
Investors were worried the sell-off would only worsen if the U.S. Federal Reserve decided to further scale back its asset-purchase program. The central bank is due to hold a policy review meeting this week.
Stocks on the Move
Index heavyweight Sony fell 3% while Panasonic was down 3.3%. Fujitsu fell 4.1% and while Hitachi gave up 3.8%.
In auto, Toyota reversed 2.1% while Mazda and Nissan were down 2.7% and 2.6% each, respectively.
Losses were broad-based with stocks across sectors trading lower in the sell-off.
Japanese companies are due to start reporting quarterly results this week.
In Hong Kong, energy shares were lower on concerns of a slowdown in China after last week’s manufacturing data.
Casino stocks also extended losses following a warning from J.P. Morgan last week that the shares have already been valued fairly.
Wynn Macau was down over 1% while MGM China Holdings fell 1.3%.
Gemdale Corp. retreated 2% on the mainland while the broader Shenzhen listed China Vanke fell 1.8%.
Mumbai markets also saw losses ahead of the Reserve Bank of India’s policy review on Tuesday.
Tata Motors fell 6.1%. The company’s MD Karl Slym was found dead after falling from a hotel room in Bangkok in what police said could be a possible suicide. Slym, 51, had attended a board meeting in the city and was staying with his wife in a room on the 22nd floor of the Shangri-La hotel.
Tata Motors has not issued any comment on the possible cause of Slym’s death. It said, however, Slym had provided leadership in a challenging market environment. Slym was earlier head of General Motors in India.
Tata Steel was down over 6% too, followed by ICICI Bank, Tata Power, Maruti Suzuki and Axis bank, each down over 4%.
SSLT, HDFC Bank and Coal India erased around 3.5% apiece while Reliance Industries, L&T and Hindalco Industries retreated around 2.5% each.