Hong Kong: Most Asian stock markets declined Wednesday after a North Korean nuclear test unnerved investors and a poor Chinese economic report dampened sentiment.
Keeping score: Japan's benchmark Nikkei 225 index lost 1 per cent to 18,195.33 and South Korea's Kospi slid 0.3 per cent to 1,925.66. Hong Kong's Hang Seng fell 0.6 per cent to 21,055.85 but the Shanghai Composite Index in mainland China rose 1.8 per cent to 3,348.12. It slumped 6.9 per cent on Monday and 0.3 per cent on Tuesday. Australia's S&P/ASX 200 retreated 1.2 per cent to 5,123.10.
Nuclear test: North Korea announced it had successfully carried out a hydrogen bomb test, after South Korea detected an "artificial earthquake" near the Pyongyang's main nuclear test site. The test is likely to raise tensions in the region and make investors more cautious and less willing to place risky bets. The surprise announcement makes it tougher to curb North Korea's longstanding efforts to establish an arsenal of nuclear-armed long-distance missiles.
Service slide: A monthly survey of China's service industries slipped to a 17-month low, renewing fears among investors that the world's No. 2 economy was facing stronger headwinds. The Caixin/Markit survey of service industry purchasing managers slipped to 50.2 in December from 51.2 the previous month. The index is based on a 100-point scale with numbers above 50 indicating expansion. China's service sector has helped offset weakness in trade and investment as the economy undergoes a painful slowdown, but the latest figures show momentum is slowing.
Quoteworthy: "I didn't expect 2016 to be anything other than a roller-coaster, but we're really starting off the roller-coaster really early," said Michael Every, head of Asia-Pacific financial market research at Rabobank. The poor Caixin reading and a weakening yuan that hurts China's export rivals were bad enough, but now "you have North Korea letting off a hydrogen bomb, not just a nuclear test, but a stronger nuclear bomb. You wonder how much worse things could get."
China measures: Stocks in China rebounded after news that Beijing would keep market steadying measures in place. A report in the Shanghai Securities News said the government would keep in place rules preventing shareholders who own more than 5 per cent of a company from selling off their stakes, until new regulations take effect. The six-month-old ban was due to expire at the end of the week, which would have increased selling pressure. Every said trading patterns strongly suggest Chinese state-owned entities were buying stocks to shore up the market after its Monday slide.
Wall Street: Major US benchmarks ended Tuesday with tiny gains. The Dow Jones industrial average gained 0.1 per cent to close at 17,158.66 and the Standard & Poor's 500 edged up 0.2 per cent to 2,016.71. The Nasdaq composite fell 0.2 per cent to 4,891.43. Australia's S&P/ASX 200 slumped 1.2 percent to 5,121.50.
Eenergy: Crude futures stabilized, with benchmark US oil adding 9 cents to $36.06 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 79 cents, or 2.1 percent, to settle at $35.97 a barrel on Thursday as demand appeared to weaken because of large global stockpiles. Brent crude, a benchmark for international oils, rose 4 cents to $36.46 a barrel in London.
Currencies: The dollar slipped to 118.67 yen from 119.13 yen in the previous day's trading. The euro strengthened to $1.0748 from $1.0744.
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