Asian equity markets finished Thursday’s trading session in negative territories after geopolitical uncertainty prompted investors to lock in their profits, after a show of strength by Asian tech stocks in the previous session after Apple Inc reported better than expected first quarter earnings.
President Donald Trump signed sign a bill enforce new sanctions on North Korea, Iran, Russia. However, the U.S president said that this bill is flawed and ‘’ will drive China, Russia, and North Korea much closer together.”
Furthermore, investors are keeping a cautious eye on employment data in the united state to be released on Friday.
In Mainland China, Equities finished the session in negative territory, Shanghai’s main benchmark Shanghai Composite fell by 0.37 percent, or 12.13 points to close at 3,272.93, and Shenzhen Composite edged lower by 0.01 percent, or 0.10 points, to settle at 1,869.21 at the close. Meanwhile, Hong Kong primary benchmark Hang Seng Index dropped 0.28 percent, or 76.37 points to trade at 27,531.01 after hours.
Regarding economic data in China, China manufacturing PMI released on Tuesday showed better than expected results for July to settle at 51.1, above economist expectations of 50.4.
Elsewhere in Japan, equities fell on Thursday after advancing for two consecutive sessions. Geopolitical tension in the Korean peninsula weight on the Japanese benchmark support. However, losses were after the release of upbeat recent earnings by its constituents.
Japans main benchmark Nikkei 225 rose fell 0.25 percent on Thursday to settle at 20,029.26 at the close.
Japanese car maker Honda announced that it beat expectation for the first-quarter earnings. Operating profit came at 2.44 billion dollars (269.2 billion yen). Moreover, the firm revised its full-year profit forecast upwards.
Meanwhile, Digital giant Sony reported record first-quarter earnings. Profit almost tripled to 1.43 billion dollars (157.61 billion yen).
Toshiba announced that its flash memory unit would invest in production equipment after the collapse of negotiations with SanDisk. Furthermore, the firm said it would increase the output ratio of its 3D flash memory capacity by up to 90 percent.
In Australia, Australian equities traded lower on Thursday for the second consecutive trading session. Aussie stocks fell along with the drop in commodity prices.
Economic data released early in the week came in as expected after the Reserve bank of Australia left its base rate unchanged. Although, Policy makers warned that the recent show of strength by the Aussie dollar could “contribute to subdued price pressures in the economy."
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