CANBERA (dpa-AFX) - Asian stock markets are mostly lower on Thursday, extending losses from the previous session on increased risk aversion, amid concerns about a prolonged U.S.-China trade war and its impact on global economic growth. Speculation that China may weaponize its dominance in rare earth minerals has added to investor worries.
The Australian market is extending losses from the previous session, with stocks lower across the board.
The benchmark S&P/ASX 200 Index is losing 43.10 points or 0.67 percent to 6,396.90, after touching a low of 6,393.00 earlier. The broader All Ordinaries Index is lower by 44.10 points or 0.67 percent to 6,492.50. Australian shares closed lower on Wednesday.
In the tech sector, Afterpay Touch Group is losing more than 4 percent, Altium is lower by more than 2 percent and WiseTech Global is declining more than 1 percent.
Among the major miners, Rio Tinto is lower by more than 2 percent, Fortescue Metals is declining more than 1 percent and BHP Group is down almost 1 percent.
Oil stocks are also weak after crude oil prices declined overnight. Santos is losing more than 1 percent, Woodside Petroleum is lower by 0.3 percent and Oil Search is down 0.2 percent.
The big four banks - ANZ Banking, National Australia Bank, Commonwealth Bank and Westpac - are down in a range of 0.3 percent to 0.6 percent.
Law firm Maurice Blackburn said it has filed a class-action lawsuit against wealth manager AMP Ltd. for allegedly charging superannuation fund members 'unjustifiably' high fees for an extended period of time. However, shares of AMP are adding 0.2 percent.
Bendigo and Adelaide Bank said it has appointed Jacqueline Hey as its next chair, succeeding board veteran Robert Johanson. The bank's shares are declining 0.3 percent.
Meanwhile, gold miners are mixed even as gold prices rose overnight. Evolution Mining is lower by 0.3 percent, while Newcrest Mining is adding 0.5 percent.
In economic news, Australia will release April numbers for building approvals and first-quarter figures for private capital expenditure today.
In the currency market, the Australian dollar is almost flat against the U.S dollar on Thursday. The local currency was quoted at $0.6918, compared to $0.6919 on Wednesday.
The Japanese market is declining following the weak cues from Wall Street.
The benchmark Nikkei 225 Index is losing 141.33 points or 0.67 percent to 20,862.04, after falling to a low of 20,819.46 earlier. Japanese shares fell on Wednesday.
The major exporters are lower despite a weaker yen. Mitsubishi Electric, Canon, Panasonic and Sony are down in a range of 0.1 percent to 0.6 percent.
Index heavyweight Softbank Group is declining more than 1 percent and Fast Retailing is lower by 0.7 percent, while Fanuc is adding 0.5 percent.
Among tech stocks, Advantest is down 0.3 percent, while Tokyo Electron is advancing 2 percent. In the auto space, Honda is up 0.2 percent, while Toyota is down 0.5 percent.
Among the major banks, Mitsubishi UFJ Financial is edging up 0.1 percent, while Sumitomo Mitsui Financial is declining 0.2 percent. In the oil sector, Inpex is adding 0.6 percent and Japan Petroluem is rising 0.2 percent.
Among the other major gainers, JGC Corp. and Idemitsu Kosan are rising almost 3 percent each, while Toho Zinc is higher by more than 2 percent.
On the flip side, Maruha Nichiro is lower by almost 4 percent, while Astellas Pharma, Haseko Corp and Takara Holdings are all losing more than 3 percent each.
In the currency market, the U.S. dollar is trading in the mid 109 yen-range on Thursday.
Elsewhere in Asia, Shanghai, Singapore, New Zealand and Hong Kong are also lower, while South Korea and Taiwan are modestly higher. The markets in Malaysia and Indonesia are closed for public holidays.
On Wall Street, stocks closed lower on Wednesday on worries about a further escalation of the U.S.-China trade dispute amid concerns China may seek to weaponize its dominance in rare earth minerals. Reports suggest China is considering restricting the export of rare earth minerals, which are crucial for the U.S. technology industry.
The Dow slumped 221.36 points or 0.9 percent to 25,126.41, the Nasdaq fell 60.04 points or 0.8 percent to 7,547.31 and the S&P 500 dropped 19.37 points or 0.7 percent to 2,783.02.
The major European markets also showed notable moves to the downside on Wednesday. The U.K.'s FTSE 100 Index slumped by 1.2 percent, while the German DAX Index and the French CAC 40 Index plunged by 1.6 percent and 1.7 percent, respectively.
Crude oil futures declined on Wednesday as fears of an escalation in U.S.-China trade war and its likely impact on the global economy raised prospects of a fall in near term energy demand. WTI crude for July ended down $0.33 or 0.6 percent at $58.81 a barrel on the New York Mercantile Exchange.
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