Asian shares lower as sentiments get dragged by Wall Street

Mar 06, 2018, 01:17
Asian shares lower as sentiments get dragged by Wall Street

The Standard & Poor's 500-stock index dropped 1.1 percent Wednesday.

Industrial companies that could be hurt by higher steel prices fell.

On Tuesday, Powell said in his first monetary policy testimony that despite the stock market's recent volatility, Fed governors still plan on hiking rates multiple times throughout 2018. Analysts and traders have cautioned that much of the turbulence this week may stem from market positioning as much as a substantial change of tack by Powell. The Nasdaq fell 92 points, or 1.3 percent, to 7,180.

Technology companies and drugmakers also fell, as they make much of their revenue outside the USA and could be vulnerable if other countries respond with tariffs of their own.

The net proceeds from the rights offering, along with additional borrowings under the revolving credit facility, will be used to repay in full the company's second-lien term loan, on which it is now in default.

Following weak leads from USA markets, the Australian share market looks set to open lower.

"The members of the S&P 500 has become quite globalized, and one may argue that most of the things that have benefited this bull market have been globalization-related", Michael O'Rourke, JonesTrading chief market strategist, said by phone.

The Nasdaq futures are down more than 53 points.

The S&P 500 fell for a third straight day after President Donald Trump said the USA would slap tariffs on steel and aluminum.

On the corporate front this morning, retailers have been hogging the spotlight.

Berkshire Hathaway gained 4 per cent after Warren Buffett said his conglomerate, which is sitting on US$116 billion of cash, is "more inclined" to repurchase stock than pay dividends as a means to use excess cash.

Excluding one-off charges and adjustments, earnings per share were positive at US$1.26.

The ASX 200 year to date was down 0.8% at the end of February - yesterday's fall took that to 1.5% and today's drop could push it well past 2%. The chief executive officer of the marijuana producer said the company would list on the U.S. Nasdaq exchange "in due course".

The shares were down 7.4% at US$42.50 ahead of the start of open outcry trading.

Revenue rose to US$4.03bn from US$3.96bn the year before and was roughly in line with expectations.

In a big week for retail earnings, Kohl's Corp reported fourth-quarter comparable sales growth that was a shade above analysts' estimate and provided an upbeat 2018 earnings outlook.