Major Asian indicators are down again following several trading sessions that closed on the upside. China's Shanghai Composite and Shenzhen Composite lost 0.22% and 0.13% respectively, and Hong Kong's Hang Seng Index decreased by 1.5%. Japan's Nikkei 225 indicator declined by 1.61%, Korea's KOSPI dropped by 0.75% and Australia's S&P/ASX 200 fell by 0.52%.
The Asian stock indices typically follow the US indices' declines. The main US stock indicators fell due to investors' expectations of further tightening of monetary policy. The Fed has already raised interest rates by 25 points last month, and it is going to continue the hikes to combat the rising inflation, which has already reached all-time highs last seen 40 years ago.
China saw a significant drop in its industrial sector activity indicator, which fell to 42 points last month from February's 50.2 points. In March, this indicator showed the lowest level since 2020. When the indicator falls below 50 points, it indicates a decline in business activity in a particular sector of the economy. According to analysts, the decline in the indicator was caused by a tightening of measures to combat COVID-19, which in turn led to disruptions in the work of businesses and a decrease in consumer demand.
Among the companies included in the Hang Seng Index, the biggest drop in the value of shares was recorded in Techtronic Industries Co. by 6.6%. At the same time, Lenovo Group, Ltd. dropped by 6.1%, Anta Sports Products, Ltd. fell by 5.1%, JD.com Inc. declined by 4.5%, and Alibaba Group Holding, Ltd. plummeted by 4,4%.
At the same time, CNOOC, Ltd. jumped by 5.4%, and PetroChina Co. increased by 2,7%.
The Asian Development Bank lowered its forecast for GDP growth of developing countries in the region, which includes China, India, and South Korea, for 2022 to 5.2% from 5.3%, which was projected at the end of 2021. The GDP growth of these countries was at 6.9% in 2021. In addition to the fight against COVID-19, the Russian-Ukrainian conflict, the consequences of which have already had and will continue to have an impact on all world economies, significantly damage developing countries.
Among the Nikkei 225 components, Toyota Motor Corp. declined by 1.4%, and Honda Motor Co. dropped by 1,7%. In addition, SoftBank Group Corp. fell by 2.5%, and Fast Retailing Co. lost 1%.
The City Index Eleventh's reported acquisition of a 5.8% stake in Cosmo Energy Holdings Co. caused its stock price to rise by 13%.
Among KOSPI index components, Kia Corp. soared by 3.8%, and Hyundai Motor Co. jumped by 1,1%. At the same time, LG Corp. dropped by 0.4%, and Samsung Electronics Co. declined by 1%.
Among the S&P/ASX 200 companies, BHP Group, Ltd. dropped by 1.3%, and Rio Tinto, Ltd. fell by 1%.