SINGAPORE — Stocks in Japan and Hong Kong led losses in major Asia-Pacific markets on Friday as the recent rally in U.S. stocks broke momentum with the Nasdaq snapping a three-day winning streak.
Hong Kong’s Hang Seng index fell 0.92% in early trading. The Hang Seng Tech index lost 2.51%, as Alibaba declined 3.56% and JD fell 4.84%.
Mainland Chinese stocks were also subdued. The Shanghai composite declined 0.63%, while the Shenzhen component was flat.
South Korea’s Kospi was down 1.22%, and Australia’s ASX 200 also dipped 0.96%, with bank stocks falling.
investors will be anticipating the release of China’s trade data on its exports and imports for December.
Meanwhile, South Korea’s central bank raised its benchmark rate by 25 basis points to 1.25%, the highest since March 2020 and back to the rate it was at before the pandemic, according to Reuters.
In other corporate news in the region, Citi is set to sell its retail businesses in four Southeast Asian countries — Indonesia, Malaysia, Thailand and Vietnam — to Singapore lender United Overseas Bank (UOB). UOB said Citi’s consumer business had a total net value of about $4 billion Singapore dollars ($2.9 billion).
Over on Wall Street, stocks struggled on Thursday as a rebound in tech stocks faded, erasing gains from earlier this week.
The S&P 500 slid 1.42% to 4,659.03, while the Nasdaq Composite fell 2.51% to 14,806.81. The Dow Jones Industrial Average dropped 176.70 points to close at 36,113.62 after rising more than 200 points earlier in the day.
Inflation worries continued to be in focus, as data stateside showed the producer price index, which measures prices received by producers of goods, services and construction, was up 0.2% for December. Overall, wholesale prices jumped nearly 10% in 2021, the highest calendar-year increase ever in data going back to 2010.
Elsewhere, Turkish President Recep Tayyip Erdogan pledged to bring down his country’s soaring inflation, which hit 36% in December, as the country’s central bank geared up for another rate-setting meeting next week.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 94.783, continuing its slide since beginning of the week.