Markets

Japan's Nikkei 225 Drops More Than 2%, Paring Losses After Entering Correction Territory Earlier

Toru Hanai | Bloomberg via Getty Images
  • Shares in Asia-Pacific largely declined on Tuesday, with Japan's Nikkei 225 falling more than 2%.
  • The Reserve Bank of Australia on Tuesday announced its decision to leave interest rates unchanged.
  • Markets in mainland China remained closed on Tuesday for the holidays.

SINGAPORE — Shares in Asia-Pacific largely fell on Tuesday following overnight losses on Wall Street, with the tech-heavy Nasdaq Composite falling more than 2%.

In Japan, the Nikkei 225 dropped 2.19% to close at 27,822.12, as shares of Fast Retailing fell 6.92%. The Topix index also declined 1.33% to finish the trading day at 1,947.75. Earlier, the Nikkei had dropped more than 3% and briefly entered correction territory, declining more than 10% off its mid-September high.

South Korea's Kospi shed 1.89% to close at 2,962.17. The Hang Seng index in Hong Kong bucked the overall trend regionally as it rose around 0.5%, as of its final hour of trading.

Shares in Australia closed lower, with the S&P/ASX 200 down 0.41% to 7,248.40. The Reserve Bank of Australia on Tuesday announced its decision to leave interest rates unchanged.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.28%.

Markets in mainland China remained closed on Tuesday for the holidays.

Oil rises

Oil prices were higher in the afternoon of Asia trading hours, with international benchmark Brent crude futures rising 0.48% to $81.65 per barrel. U.S. crude futures gained 0.35% to $77.89 per barrel.

Those gains upward came after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed Monday to stick to an existing pact to raise oil output by 400,000 barrels per day in November.

Shares of oil companies in Asia-Pacific rose in Tuesday trade, with Beach Energy and Santos in Australia rising 0.7% and 2.54%, respectively. Japan's Inpex rose 5.6% on the day while PetroChina shares in Hong Kong jumped 6.78% in afternoon trade.

Overnight stateside, the S&P 500 dropped 1.3% to 4,300.46 while the Dow Jones Industrial Average fell 323.54 points to 34,002.92. The Nasdaq Composite slipped 2.14% to around 14,255.49.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.98 after seeing an earlier low of 93.807.

The Japanese yen traded at 111.17 per dollar, stronger than levels above 111.1 seen against the greenback yesterday. The Australian dollar changed hands at $0.7271, largely holding on to gains after its rise from below $0.724 late last week.

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