Investing.com - Major share markets across the Asian Pacific region experience a downturn at the opening on Wednesday, reflecting the lower start to the year seen in global markets.
By 11:20 am AEDT (12:20 am GMT) the S&P/ASX 200 was down by 1.1% while the KOSPI 200 dipped 1.3%.
US stocks were also on a downward trend on Tuesday afternoon as investors decided to cash in on the profits from the 2023 rally, which almost saw the S&P 500 index reach a new record. The majority of the major stock indexes reported losses. The tech-centric Nasdaq experienced the most significant decline, dropping more than 1%, primarily due to pressure on shares in Apple (NASDAQ:AAPL) and major chip companies.
In the commodity markets, Brent crude oil experienced a 1.36% fall to $US75.99 a barrel, while gold also saw a 0.22% drop to $US 2,058.43. Conversely, iron ore prices rose by 2.2% to $US141.75 a tonne.
In the local bond markets, yields on Australian 2 Year government bonds were slightly up at 3.74%, and the 10 Year yield also edged up to 4.00%. In the US, Treasury notes experienced a slight increase, with the yield on 2 Year up to 4.32% and the 10 Year yield up at 3.94%. The Australian dollar fell to 65.57 US cents from its previous close of 68.10.
In Asia, Chinese shares closed lower on the first trading day of 2024. Investors are still hoping for more fiscal and monetary stimulus to end the deflationary cycle. In Hong Kong, shares closed lower, primarily driven by consumer-related and property stocks. Nikkei futures are 320 points lower on the SGX, potentially due to the mild strength of the yen. Indian shares also ended lower, tracking losses among most regional markets.
In Europe, stocks erased earlier gains, though Maersk shares surged 6% higher after the Danish shipping giant said it would indefinitely suspend services through the Red Sea (NYSE:SE) following a weekend attack on one of its vessels. The Stoxx Europe 600 dropped 0.2% and the CAC 40 backtracked 0.3%, though the DAX advanced 0.1%.
The FTSE 100 index closed Tuesday down 0.15% at 7721 points, slipping from its seven-month high and in line with global peers. In North America, US stocks were trading lower Tuesday afternoon as investors take profits - and a step back - after a 2023 rally that left the S&P 500 index just shy of a fresh record.
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