Closing Bell 20th August: ASX Edges Higher as Banks Outperform, Materials Weigh

Asia-Pacific Markets Slide on Weak Japan Trade Data and China Rate Hold

Asia-Pacific equities fell on Wednesday, following overnight declines on Wall Street, as investors weighed Japan’s disappointing trade figures and China’s decision to keep lending rates unchanged.

Japan’s exports dropped 2.6 per cent year-on-year in July, the sharpest fall in more than four years, exceeding economists’ forecast of a 2.1 per cent decline and worsening from June’s 0.5 per cent drop. The weak data pressured Japanese equities, with the Nikkei 225 slipping 0.93 per cent and the Topix down 0.31 per cent. Technology stocks led losses, with SoftBank Group tumbling as much as 9.17 per cent after its $2 billion investment in Intel. Despite Intel’s 6.97 per cent rise on Wall Street, SoftBank shares fell for a second straight session.

Elsewhere, South Korea’s Kospi fell 1.52 per cent and the Kosdaq 1.77 per cent, while Australia’s S&P/ASX 200 opened 0.24 per cent lower. Hong Kong’s Hang Seng retreated 0.71 per cent, and China’s CSI 300 slipped 0.48 per cent after the central bank held loan prime rates steady for a third month. Taiwan’s Taiex fell over 2 per cent.

Notably, Chinese toymaker Pop Mart rebounded, surging more than 8 per cent after initially falling, buoyed by a near-400 per cent jump in net profit on strong global demand for its Labubu dolls.