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Wednesday at 15:15 GMT
What do you want to know
- Inventories fell overall in Asia after a difficult day on Wall Street
- Renminbi rises as PBoC increases cash before holidays
- The yen drops after the fall of Japanese exports and the BoJ lowers the forecast of inflation
Overall view
Shares in the Asia-Pacific region recorded a sharp decline on Wednesday, amid weakening confidence in global growth and worries over US-China trade talks. The yen fell after trade data recorded the biggest drop in exports since 2016 and the Bank of Japan lowered its inflation outlook, while the renminbi benefited from renewed liquidity at the bank China, and that crude prices stabilized after falling in the previous session.
Hot topic
Stock markets were down Wednesday in Asia after a tough day on Wall Street, where the S & P 500 index closed the day down 1.4% after a long weekend back and forth. after the Trump government rejected the offer of Chinese authorities to visit the United States this week for preparatory trade negotiations.
In Tokyo, the Topix fell by 0.4%, with only telecommunications and technology segments in positive territory and energy inventories down 2%. In Sydney, the S & P / ASX 200 Index fell 0.3%, with a 1.6% drop in energy stocks and a 0.6% decline in the mining sector offsetting gains elsewhere.
Inventories in Seoul were more dynamic, with the Kospi up 0.2%, while Hong Kong's Hang Seng fell 0.1%, while technology stocks fell 1%. China's CSI 300 index, consisting of Shanghai and Shenzhen listed stocks, edged down 0.1%.
Forex and fixed income
In the currency markets, the Japanese yen fell 0.3% to 109.66 yen against the dollar after the Bank of Japan reduced its inflation outlook for 2019 and as the export data show that shipments fell 3.8% in December, the largest decline in two years, China has collapsed.
The Chinese renminbi rebounded Wednesday against the dollar, the biggest rise in a week allowing it to end a series of four-day losses after the country's central bank used a new loan facility to inject Rmb 258 billion. in the banking system before the lunar new year holidays.
The onshore renminbi, which trades in a 2% range in both directions of a central point set each morning by the central bank, has rallied to 0.4%, to Rmb 6.7834 per dollar . The offshore rate, which is not related to any trading band, also rose up to 0.4% to Rmb 6.7872 million.
Yields on sovereign bonds, which are moving in the opposite direction of prices, have changed little as a result of gains made during Tuesday's session. The yield on 10-year US Treasury bonds remained virtually unchanged at 2.743%.
Basic products
Oil prices remained steady Wednesday after falling by about 2% in the previous session. Brent crude was $ 61.48 a barrel, while West Texas Intermediate, the US marker, edged down 0.1% to $ 52.95.
Oil prices have recently been under pressure in the face of "worries about global economic growth and renewed trade tensions," ANZ badyst Soni Kumari said. Ms. Kumari added, however, that these concerns are not expected to offset the decline in production among major producers, and added that drilling activity in the United States is slowing down, which could limit the growth in production of shale in the United States in 2019.
The price of gold fell 0.1% to $ 1,283.40 an ounce.
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