Asian Shares Decline As China Growth Worries Mount

(RTTNews) - Asian stocks ended lower on Wednesday after new data showed China's economy continued to struggle in June.

Investors also looked ahead to the release of the Federal Reserve's latest monetary policy meeting minutes as well as the U.S. jobs report for hints on the trajectory of U.S. monetary policy.

The dollar rose on weak risk sentiment after a private survey showed China's services activity expanded at the slowest pace in five months in June, adding to worries about a faltering post-pandemic recovery in the world's second-largest economy.

Gold held steady and Treasury yields slipped, while oil reversed some gains made the previous day after Russia and Saudi Arabia, the world's biggest oil exporters, announced they will extend their output cuts in order to support prices.

Chinese shares fell after Goldman Sachs downgraded ratings on some Chinese banks. The benchmark Shanghai Composite index settled 0.69 percent lower at 3,222.95. Hong Kong's Hang Seng index fell 1.57 percent to 19,110.38.

Japanese shares ended slightly lower after Fast Retailing posted a drop in monthly sales. Shares of the Uniqlo brand owner fell 2.5 percent while the Nikkei average ended down 0.25 percent at 33,338.70. The broader Topix index finished marginally lower at 2,306.03.

Pharma and shipping stocks rallied in an otherwise subdued market. Daichi Sankyo jumped 6.8 percent and Kawasaki Kisen Kaisha climbed 5.6 percent.

Rakuten Group reversed an early slide to end 0.60 percent higher after the e-commerce firm announcing steps to list its online brokerage arm.

In economic releases, the headline au Jibun Bank Japan services business activity index eased to 54 in June from a series record 55.9 in May.

Seoul stocks ended notably lower, with the Kospi average finishing down 0.55 percent at 2,579 ahead of the June's FOMC meeting minutes release later in the day. Tech heavyweights Samsung Electronics and SK Hynix both fell over 1 percent.

Australian markets ended in the red as the latest reports on retail sales and service sector activity painted a mixed picture of the economy. The benchmark S&P/ASX 200 dropped 0.35 percent to 7,253.20, with heavyweight financials leading losses, a day after the Reserve Bank held its cash rate steady. The broader All Ordinaries index ended 0.34 percent lower at 7,453.10.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index edged up 0.18 percent to 12,002.46.

U.S. markets were closed on Tuesday for the Independence Day holiday.