CANBERA (dpa-AFX) - Most of the Asian stock markets are closed on Friday for the Labor Day holiday. Among the markets that are open, the Japanese and Australian markets are sharply lower following the negative cues from Wall Street as disappointing U.S. economic data highlighted the impact of the coronavirus pandemic. Weak earnings results from e-commerce giant Amazon further dampened sentiment.
The Australian market is sharply lower, with stocks falling across the board, following the weak cues from Wall Street. Data showing that Australian manufacturing contracted at its worst pace since April 2009 also weighed on the market.
The benchmark S&P/ASX 200 Index is losing 179.10 points or 3.24 percent to 5,343.30, after touching a low of 5,338.00 earlier. The broader All Ordinaries Index is lower by 179.30 points or 3.20 percent to 5,418.40. Australian stocks closed notably higher on Thursday.
In the oil sector, Santos is tumbling more than 6 percent, Oil Search is falling more than 5 percent and Woodside Petroleum is lower by almost 4 percent even as crude oil prices gained sharply overnight.
In the mining space, BHP is losing more than 5 percent, Fortescue Metals is lower by more than 4 percent and Rio Tinto is declining almost 4 percent.
Among the big four banks, ANZ Banking is declining more than 4 percent, while Commonwealth Bank and National Australia Bank are lower by more than 3 percent each and Westpac is down almost 3 percent.
Among gold miners, Newcrest Mining is falling more than 6 percent and Evolution Mining is losing more than 3 percent after gold prices further extended losses overnight.
ResMed reported a 55 percent surge in profit for the third quarter from last year, while revenue grew 16 percent as the company ramped up production of ventilators for COVID-19 victims. The respiratory health company's shares are gaining more than 5 percent.
In economic news, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia fell deep into contraction in April, with a manufacturing PMI score of 35.8. That's down sharply from 53.7 in March and it moves well beneath the boom-or-bust line of 50 that separates expansion from contraction as it reflects the damage from the Covid-19 pandemic.
In the currency market, the Australian dollar is lower against the U.S. dollar on Friday. The local unit was quoted at $0.6584, compared to $0.6543 on Thursday.
The Japanese market is notably lower. The benchmark Nikkei 225 Index is losing 372.52 points or 1.84 percent to 19,821.17, after falling to a low of 19,815.95 earlier.
Market heavyweight SoftBank Group is declining almost 1 percent and Fast Retailing is lower by more than 2 percent.
The major exporters are lower despite a weaker yen. Panasonic is losing more than 3 percent and Mitsubishi Electric is lower by almost 3 percent, while Sony and Canon are declining almost 2 percent each.
In the tech space, Tokyo Electron is falling more than 4 percent and Advantest is losing more than 3 percent. Among automakers, Honda is lower by almost 4 percent and Toyota is down almost 2 percent.
In the oil sector, Inpex is declining more than 1 percent, while Japan Petroleum is advancing more than 1 percent after crude oil prices gained sharply overnight.
Among the other major gainers, Z Holdings is rising more than 3 percent and Tokyo Gas is higher by almost 2 percent.
On the flip side, Keisei Electric Railway is tumbling more than 7 percent, while Mitsui OSK Lines, JTEKT Corp. and Alps Alpine are losing almost 7 percent each. West Japan Railway and Tokio Marine Holdings are lower by almost 6 percent each.
In economic news, members of the Bank of Japan's monetary policy board acknowledged that the global Covid-19 pandemic was causing considerable damage to economies around the world, minutes from the central bank's emergency meeting on March 16 has revealed - and that immediate action was needed to provide relief.
Japanese exports have taken a major hit from the virus, which has caused a sharp drop in overseas demand, the minutes showed.
Consumer prices in the Tokyo region were up 0.2 percent on year in April, the Ministry of Communications and Internal Affairs said. That was shy of expectations for an increase of 0.3 percent and down from 0.4 percent in March.
Core CPI, which excludes volatile food prices, sank 0.1 percent on year - also missing expectations for an increase of 0.1 percent and down from 0.4 percent in the previous month.
In the currency market, the U.S. dollar is trading in the lower 107 yen-range on Friday.
The New Zealand market is modestly lower. Many of the markets in the region are closed for the Labor Day holiday, including South Korea, China, India, Singapore, Taiwan, Hong Kong, Indonesia, Malaysia and Thailand.
On Wall Street, stocks closed notably lower on Thursday following the release of some disappointing U.S. economic data. Personal income in the U.S. tumbled by more than expected in the month of March, according to a report released by the Commerce Department. A separate report released by the Labor Department showed a notable decrease in first-time claims for U.S. unemployment benefits in the week ended April 25th, although claims remain at a significantly elevated level.
The Dow tumbled 288.14 points or 1.2 percent to 24,345.72, the Nasdaq fell 25.16 points or 0.3 percent to 8,889.55 and the S&P 500 slumped 27.08 points or 0.9 percent to 2,912.43.
The major European markets also moved sharply lower on Thursday. The U.K.'s FTSE 100 Index plummeted by 3.5 percent, while the German DAX Index and the French CAC 40 Index tumbled by 2.2 percent and 2.1 percent, respectively.
Crude oil prices rose sharply on Thursday, gaining for a second straight session, reacting to reports that some major producers in the U.S. have reduced output. WTI crude for June gained $3.78 or a little over 25 percent at $18.84 a barrel.
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