Forexpros – Asian stock markets were broadly lower in holiday-thinned trade on Thursday, as appetite for riskier assets came under pressure after weak economic data out of the U.S. and the euro zone.
During late Asian trade, Hong Kong’s Hang Seng Index shed 0.5%, while Australia’s S&P/ASX200 dipped 0.2%.
Trading volumes in the region were subdued as markets in Japan remained closed for a public holiday.
Data from payroll processing firm ADP on Wednesday showed that the U.S. private sector added 119,000 jobs in April, far short of expectations for a gain of 177,000, after an increase of 209,000 in March. It was the smallest increase in ADP nonfarm payrolls since September 2011.
The data added to fears that the economic recovery in the U.S. is losing momentum, ahead of a government report on nonfarm payrolls on Friday, after government data in March showed a slowdown in hiring.
Meanwhile, fears over the economic outlook for the euro zone lingered after reports showed that the unemployment rate in the single currency bloc climbed to a record 10.7% in March and final euro zone manufacturing data for April slumped to a 34-month low.
Shares in Hong Kong retreated from a seven-week high, weighed down by losses in Chinese lenders after Singapore state-investment firm Temasek Holdings raised USD2.48 billion by selling portions of stakes it holds in Bank of China and China Construction Bank.
Bank of China shares dropped 4% and China Construction Bank retreated 3.1%.
Hong Kong-based retailers with high exposure to Europe also contributed to losses, with Esprit Holdings falling 3% and Prada shares tumbling 3.65%.
Elsewhere, in Australia, raw material producers were broadly lower, tracking losses in copper and gold prices, which dampen earnings prospects for miners and energy explorers.
Mining giant Rio Tinto declined 1.3%, while iron ore producer Fortescue Metals slumped 0.9%.
The index remained supported closed to Wednesday’s nine-month high after Westpac Banking shares rose 1.3% on the back of stronger-than-expected first-half earnings results.
The lender reported record first-half cash earnings for the second time in a row, even as it struggled to preserve profit margins amid slowing loan growth and higher funding costs.
Looking ahead, the outlook for European stock markets was mildly upbeat ahead of the outcome of a European Central Bank meeting later in the day.
The EURO STOXX 50 futures pointed to a gain of 0.45%, France’s CAC 40 futures indicated an increase of 0.55%, Germany’s DAX futures rose 0.5%, while London’s FTSE 100 futures added 0.4%.
Later in the day, the ECB was to announce its benchmark interest rate. The announcement was to be followed by a press conference with ECB head Mario Draghi.
The U.S. was to produce government data on unemployment claims, as well as preliminary data on nonfarm productivity and unit labor costs. In addition, the Institute of Supply Management was to produce a report on service sector growth.
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