Asia Markets: Asian markets pull back, led by sharp declines in China

Asian stock markets fell in early trading Thursday, after Wall Street closed lower and the Fed minutes suggested more interest-rate hikes ahead.

Japan’s Nikkei NIK, -0.77%   was down 0.5%, with energy stocks weak while financials were up amid fresh overnight gains in bond yields. After crude’s latest decline Wednesday, oil distributor Idemitsu Kosan 5019, -5.75%   was down 4.5% and oil explorer Inpex 1605, -2.43%   dropped 1.9%. The prospects of still-higher interest rates helped financials. Sony Financial 8729, +1.92%  , whose primary business is insurance, was up 1.9% while major bank Resona 8308, +0.43%   gained 1.5%. Elsewhere, Japan’s exports fell in September for the first time in almost two years, weighed down over fears of the U.S.-China trade dispute and a global economic slowdown.

After yesterday’s holiday and strong regional gains, Hong Kong stocks were little changed amid generally modest declines elsewhere in the region. The Hang Seng Index HSI, -0.39%   was about flat. The energy sector declined following Wednesday’s crude-price slide. Oil giant CNOOC 0883, -2.68%   was down 2.5% and Sinopec 0386, -3.83%   was off 3.3%. But developer New World 0017, +1.31%   rose 1.3%.

Chinese stocks slid further. The Shanghai Composite SHCOMP, -2.07%   was down 1.7% and the Shenzhen Composite 399106, -1.67%   by 1.5% as both hit fresh four-year lows. Oil stocks were among the weakest plays, while tourism and winemakers are also underperforming. China International Travel Service 601888, -6.12%  , one of the consumer “white horses,” fell 5.7% after dropping the 10% daily limit yesterday as gambling reportedly isn’t coming to Hainan island, as some had hoped. Also, on Wednesday the U.S. Treasury declined to label China a currency manipulator, but said it was concerned about the yuan’s recent weakness.

South Korea’s Kospi SEU, -0.87%   dropped 0.6%, as the Bank of Korea announced it would keep its monetary policy steady. Chip maker SK Hynix 000660, -2.27%  was down 2%.

Australia’s benchmark XJO, +0.06%   was about flat, with energy companies declining. New Zealand’s index NZ50GR, -0.01%   rose slightly, as Air New Zealand AIR, -0.18%  rose after the drop in oil prices.

Markets in Taiwan Y9999, -0.25%  , Singapore STI, -0.36%  and Malaysia FBMKLCI, -0.14%   were all down.

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