Asian stock indices are declining again after a slight increase the day before. China's Shanghai Composite and Shenzhen Composite were down by 0.1% and 0.61% respectively, and the Hang Seng Index dropped by 0.95%. Japan's Nikkei 225 decreased by 0.37%. At the same time, the Australian S&P/ASX 200 climbed by 0.15% and the Korean KOSPI added 0.44%.
Weak economic data from China has become a reason for pessimistic sentiment in the market. Thus, the index of business activity in the industrial sector of the country this month decreased to 49.5 points from February's 50.2 points. This index declined more than analysts predicted. The indicator in the services sector also showed a decline to 48.4 points from 51.6 points recorded earlier. A decrease in this indicator below the level of 50 points indicates a slowdown in activity in the sector of the economy.
Against the backdrop of the worsening situation with the spread of COVID-19 in China, such weak indicators further undermine investor confidence in continued economic growth. Experts believe that even if new outbreaks of COVID-19 are short-lived, it will take some time for the country's economy to recover.
Investors are also expecting the situation in Ukraine to change as a result of the talks between Russian and Ukrainian representatives in Istanbul. However, no major breakthrough is expected so far, although the Russian side notes more constructive and concrete proposals to resolve the conflict from the Ukrainian delegation. Notably, until the Russian-Ukrainian conflict is resolved, the markets will remain unstable.
Among the constituents of the Hang Seng Index, Techtronic Industries Co. declined by 3.1%, JD.com Inc. dropped by 2.9%, and Anta Sports Products, Ltd. decreased by 3%.
At the same time, securities of other Chinese companies rose in value: CITIC, Ltd. rose by 3.2%, China Construction Bank Corp. increased by 2.2%, Bank of China, Ltd. rose by 1.3%, and Industrial & Commercial Bank of China, Ltd. climbed by 1.2%.
Among the components of Japan's Nikkei 225 index, Recruit Holdings Co. declined by 4%, Kyowa Kirin Co. dropped by 3.5%, and Nippon Express Holdings Inc. decreased by 3,4%.
At the same time, the securities of other Japanese companies showed growth. Toyota Motor Corp. increased by 0.8%, Mazda Motor Corp. jumped by 1%, and Fast Retailing Co., Ltd. soared by 0.1%.
Among the components of the KOSPI index, LG Corp. rose by 2%, and Kia Corp. climbed by 0,14%.
Among the companies included in the S&P/ASX 200 indicator, there was a rather sharp drop in the value of shares of Reece, Ltd. dropping by 5%, Xero, Ltd. plummeting by 4.5%, as well as Premier Investments, Ltd. nosediving by 4,1%.
At the same time, the share prices of BHP Group, Ltd., and Rio Tinto, Ltd. increased by 2.3% and 2% respectively.