(RTTNews) - Asian markets ended the trading session in negative territory on Wednesday amid concerns about sustaining global economic recovery. Positive closing on Wall Street in the previous session, but off the highs, failed to enthuse the market participants as they preferred to stay on the sidelines for want of more cues on global economy ahead of the start of earnings season as early as next week in the US. In Japan, the benchmark Nikkei 225 Index dropped 58.39 points, or 0.63% to 9,280, while the broader Topix index of all First Section issues was down 5.73 points, or 0.68%, at 841. On the economic front, a report released by the Ministry of Finance in Japan revealed that official reserve assets in the country increased US$8.92 billion to US$1.05 trillion at the end of June. As per the report, foreign currency reserves totaled US$995.67 billion, up from US$987.64 billion at the end of May, and Special Drawing Rights increased to US$19.79 billion in June from US$19.73 billion at the end of the previous month. Exporters and Electric Machinery makers led the declines as the local currency strengthened against the US Dollar and the Euro. Fanuc Ltd declined 2.33%, Tokyo Electron Ltd shed 1.89%, Kyocera Corp. slipped 1.25%, Sony Corp. fell 1.89%, Advantest Corp. lost 1.39%, TDK Corp. was down 0.51%, and Canon Inc, edged down 0.45%. All Nippon Airways declined 2.77%. Securities stocks also ended weaker on global economic concerns. Nomura Holdings plunged 3.27%, Matsui Securities shed 1.16%, Daiwa Securities Group declined 1.14% and Mizuho Securities lost 1.49%. Shipping stocks also dropped on concerns about impact of global economic recovery on sea transportation. Mitsui OSK Lines lost 2.05%, Kawasaki Kisen Kaisha plunged 3.04% and Nippon Yusen fell 2.15%. Major banks also slipped on global economic concerns. Resona Holdings was down 3.46%, Mitsubishi UFJ slipped 0.96%, Sumitomo Mitsui Financial shed 0.69% and Mizuho Financial lost 1.40%. In Australia, the benchmark S&P/ASX200 Index slipped 21.50 points, or 0.50% and closed at 4,255, while the All-Ordinaries Index ended at 4,278, representing a loss of 21.90 points, or 0.51%. On the economic front, a report released by the Australian Industry Group revealed that its performance of Construction Index declined 6.8 points, to a reading of 46.4, in June, following three straight months of expansion. A reading below 50.0 indicates contraction while a reading above 50.0 signals expansion. A report released by the Department of Education, Employment and Workplace Relations revealed that the country’s leading employment indicator improved for the third consecutive month in July. As per the report, the indicator stood at minus 0.599, up from minus 0.832 in June. Commenting on the report, the department noted, “However, it is still too early to confirm that a renewed quickening in the pace of employment growth above its long-term trend rate of 1.9% per annum is in prospect, because the Indicator has risen for fewer than six consecutive months.” Gold related stocks led the decline following sharp drop in gold prices in the international market. Lihir Gold fell 1.90% and Newcrest Mining lost 1.99%. Banks also ended in negative territory on concerns about global economic recovery. ANZ Bank slipped 1.30%, Commonwealth Bank fell 1.31%, National Australia Bank lost 1.32% and Westpac Banking was down 0.75%. Investment banking company Macquarie Group was down 2.18%. Among pharmaceutical stocks, Sigma Pharmaceuticals was the star performer, having surged 13.92% after revealing that it has received an offer from Aspen Pharmacare to be acquired for A$648 million. Mixed trading was witnessed among mining and metal stocks. BHP Billiton advanced 0.75%, Fortescue Metals added 0.25%, Iluka Resources climed 2.53%, Minara Resources surged up 7.58%, Oz Minerals gained 1.47% and Rio Tinto was up by 1.14%. However, Gindalbie Metals slipped 1.55%, Macarthur Coal shed 1.64%, Mincor Resources lost 2.34%, and Murchison Metals was down 2.33%. In Hong Kong, the benchmark Hang Seng Index ended in negative territory with a loss of 227.05 points, or 1.13%, at 19,857, taking cues from other neighboring markets in the region amid concerns about global economic recovery. Positive closing on Wall Street in the previous session, well off the highs, failed to enthuse market participants as they await more cues on the health of the global recovery. Caution ahead of earnings next week in the US also impacted market sentiment with as many as 40 of the 42 components ending in negative territory. Lingering concerns about the strength of the U.S. economic recovery weighed on the Indian market Wednesday. The benchmark 30-share Sensex ended down 143 points or 0.81% near the day’s lows at 17,471, while the 50-share Nifty fell by 48 points or 0.91% to 5,241. The small-cap and mid-cap indexes on the BSE closed on a flat note, outperforming the frontline indexes. In the broader market, decliners outnumbered gainers by 1540 to 1346 shares. Oil/gas, metal, banking, realty and auto stocks bore the brunt of the selling, while telecom and IT stocks saw selective buying. Among the other major markets open for trading, China’s Shanghai Composite Index ended in positive territory with a gain of 11.69 points, or 0.49%, at 2,421. However, Singapore’s Strait Times Index declined 6.99 points, or 0.24% to close at 2,861, Taiwan’s Weighted Index slipped 14.02 points, or 0.19%, to close at 7,534, and Indonesia’s Jakarta Composite Index declined 8.60 points, or 0.30%, and closed at 2,902. For comments and feedback: contact editorial@rttnews.com

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