Asian stocks mostly lower as US tax bill uncertainty weighs

A woman walks past an electronic stock board showing the Hang Seng Index at a bank in Hong Kong, Friday, Dec. 15, 2017. Asian stock markets were mostly lower Friday as uncertainty over a sweeping U.S. tax revamp outweighed an optimistic Japanese economic survey. (AP Photo/Kin Cheung)
A woman walks past an electronic stock board showing the Hang Seng Index at a bank in Hong Kong, Friday, Dec. 15, 2017. Asian stock markets were mostly lower Friday as uncertainty over a sweeping U.S. tax revamp outweighed an optimistic Japanese economic survey. (AP Photo/Kin Cheung)
An electronic stock board shows the Hang Seng Index at a bank in Hong Kong, Friday, Dec. 15, 2017. Asian stock markets were mostly lower Friday as uncertainty over a sweeping U.S. tax revamp outweighed an optimistic Japanese economic survey. (AP Photo/Kin Cheung)

HONG KONG — Asian stock markets were mostly lower Friday as uncertainty about the progress of a sweeping U.S. tax revamp outweighed an optimistic Japanese economic survey.

KEEPING SCORE: Japan's benchmark Nikkei 225 index fell 0.9 percent to 22,498.85 while South Korea's Kospi climbed 0.4 percent to 2,478.37. Hong Kong's Hang Seng shed 1 percent to 28,887.09 and the Shanghai Composite in mainland China lost 0.6 percent to 3,272.00. Australia's S&P/ASX 200 sank 0.2 percent to 5,998.30.

JAPAN SURVEY: Corporate sentiment in Asia's second biggest economy is at an 11-year high, according to a quarterly survey. The Bank of Japan's "tankan" business outlook based on a poll of more than 10,000 companies posted its strongest reading since the end of 2006, in the latest sign that the economy is picking up momentum.

TAXING TIME: President Donald Trump's $1.5 trillion U.S. tax overhaul was teetering on a knife-edge in the Senate, complicating Republican leaders' goal of pushing it through Congress next week and unsettling investor confidence. Senator Marco Rubio vowed to vote against the bill, which gives generous tax cuts to corporations and the wealthy, unless child tax credits are expanded. The bill's original version was approved by only 51-49, with Rubio's support.

MARKET INSIGHT: "A sustained slide into the end of the week may be the case as the tax reform jitters induced a risk-off mood for markets in the region this morning," said Jingyi Pan, strategist at IG Markets. "Notably, we have seen Japan's latest fourth quarter Tankan numbers adding to the set of positive indicators from the country, though little reaction had been seen on the Nikkei 225."

CENTRAL BANKING: Markets were digesting the impact of a raft of decisions by major global central banks over the previous day. The U.S. Federal Reserve raised its benchmark rate for the third time this year as anticipated and indicated three more hikes are in store next year. Policymakers in China and Hong Kong followed suit with their own increases while the European Central Bank and the Bank of England kept their main rates on hold, as expected.

WALL STREET: Major U.S. benchmarks ended lower. The Standard & Poor's 500 index fell 0.4 percent to close at 2,652.01. The Dow Jones industrial average lost 0.3 percent to 24,508.66. The Nasdaq shed 0.3 percent to 6,856.53.

CURRENCIES: The dollar weakened to 112.12 yen from 112.37 yen on Wednesday. The euro rose to $1.1790 from $1.1776.

ENERGY: Oil futures advanced. Benchmark U.S. crude rose 7 cents to $57.11 a barrel on the New York Mercantile Exchange. The contract rose 44 cents to close at $57.04 a barrel on Thursday. Brent crude, used to price international oils, added 4 cents to $63.35 per barrel in London.

Must Read

Asian markets lower after Wall Street decline

Sep 15, 2016

Asian stock markets were mostly lower Thursday following Wall Street's decline in light trading...

China's Xi offers populist message in New Year's...

Dec 31, 2016

Chinese President Xi Jinping says his government will continue to focus on poverty alleviation at...

China begins to ease its 2,000-year-old monopoly...

Jan 3, 2017

China has started an overhaul of its salt industry, easing a monopoly that has existed in some form...

China pledges further cuts in excess steel, coal...

Jan 10, 2017

China's top economic planner has pledged to continue cutting steel and coal production, which have...

Asian markets lower amid Brexit worries

Jan 17, 2017

Asian stock markets are mostly lower after Britain said Prime Minister Theresa May will call for a...

Sign up now!

Advertisement