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Japan markets slide following Wall Street losses; China data falls short – CNBC

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Asian stocks were were mixed in Monday trade after Wall Street closed lower on news that planned stateside tax cuts could be gradually implemented. Investors in the region also digested the release of China’s official Purchasing Managers’ Index and awaited the Bank of Japan’s rates decision.

Markets on the move 

Japan’s Nikkei 225 declined 0.48 percent the Bank of Japan’s interest rates decision. Financial stocks recorded losses of more than 1 percent: Mitsubishi UFJ was down 2.11 percent and Nomura Holdings tumbled 2.55 percent. Tech shares, however, were mixed.

Industrial production in September declined 1.1 percent from a month ago, government data showed. That compared to a median 1.5 percent fall estimated by markets, Reuters said.

Across the Korean Strait, the Kospi edged up 0.11 percent. Automakers rallied and retailers saw gains, but several blue-chip tech names declined: Hyundai Motor was up 1.6 percent, Lotte Shopping rose 4.29 percent and LG Electronics declined 2.95 percent.

Of note, Samsung reported its third-quarter profit almost tripled from a year ago to 14.5 trillion won ($12.91 billion), boosted by memory chip income, according to Reuters. Samsung shares reversed early losses to climb 0.19 percent.

The S&P/ASX 200 rose 0.06 percent, with stocks in the energy and consumer staples sub-indexes leading gains.

Hong Kong’s Hang Seng Index slid 0.37 percent, with casino stocks pressured in early trade.

On the mainland, the Shanghai Composite extended losses made in the last session, edging down 0.31 percent in early trade. The Shenzhen Composite was off 0.047 percent.

China’s official manufacturing Purchasing Managers’ Index for October came in at 51.6 — missing the 52.0 figure forecast by analysts in a Reuters poll. The official services PMI, meanwhile, came in at 54.3, below the 55.4 seen last month.

Companies on Tuesday’s earnings calendar include Sony and Panasonic.

U.S. stocks closed lower on Monday following the tax cut reports, with the Dow Jones industrial average fell 85.45 points to end at 23,348.74.

The lead up

Tax cuts were in the spotlight overnight following a Bloomberg report that planned reductions in the corporate tax rate would be gradually implemented. That plan would lower the corporate tax rate by three percentage points each year from the existing 35 percent beginning in 2018.

In response to the latest reports, Press Secretary Sarah Sanders said President Donald Trump’s position on corporate taxes had not changed.

Central banks were also in focus this week, with the Bank of Japan’s two-day meeting first to wrap up on Tuesday. Few surprises are expected from the event.

The Federal Open Market Committee will begin its own two-day meeting on Tuesday and is due to make its interest rates decision on Wednesday U.S. time.

Ahead, Trump is expected to announce his choice for the next chair of the Federal Reserve on Thursday. Most in the markets expect Trump to choose Fed Governor Jerome “Jay” Powell for the role. Other candidates that are in the running include Stanford economist John Taylor, current Fed Chair Janet Yellen and former Fed Governor Kevin Warsh.

Also of note was the indictment of former Trump campaign chairman Paul Manafort as part of the ongoing Russian interference probe.

“This story which has popped up again … could unsettle markets in the run-up to Trump’s big [Fed] announcement, tax policy progress and Asia tour,” Rob Carnell, Asia head of research at ING, cautioned in a note.

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Japan markets slide following Wall Street losses; China data falls short – CNBC}

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