Asian stocks fall on weak trade figures

<p>Stocks in Japan turned lower this morning (September 20th) following weak trade figures in Japan.</p>

Asian stocks fell in early trading this morning (September 20th) after Japanese exports fell for a third consecutive month, adding to concerns the economic downturn is worsening.

With the regional benchmark retreating from its highest recorded close since May, the markets were also weakened due to signs China's manufacturing could contract for an 11th month.

Japanese data showed the country's export sector was continuing to feel the effects of the slowdown in Europe, totaling 5.05 trillion yen (£39.7 billion) in August – down 5.8 per cent from one year ago.

As a result, the Nikkei 225 index dropped 1.4 per cent to 9,108.71, while South Korea's Kospi shed 0.9 per cent to 1,990.65 and Hong Kong's Hang Seng fell 0.5 per cent to 20,721.78.

Benchmarks in Indonesia, Taiwan, Singapore and mainland China also fell, while New Zealand's bucked the trend and rose.

Peter Elston, Singapore-based head of Asia Pacific strategy at Aberdeen Asset Management, told Business Week: "There's some fairly significant weakness just around the corner and that's going to have a fairly big impact on corporates and markets. We're fairly cautious."

Learn all about CFD trading strategies and the stock market at City Index. 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.