Asian markets correct upwards following Wall Street’s red close

Asian stock indexes were mixed on Wednesday, trying to cap losses following Wall Street’s overnight plunge in the light of a softer-than-expected State of the Union speech in Congress.

Tokyo’s Nikkei was able to reverse early session losses as manufacturing and technology sectors pushed higher, while financials capped gains.

In South Korea, the Kospi was supported by heavy weights such as Samsung Electronics, which added nearly 6 percent after the company announced a 50:1 stock split. The decision was "based on the view that a high share price was a hindrance to potential investors," company representatives explained in a s statement.

Components of the Australian S&P/ASX 200 were mainly in green territory, with the exception of energy and materials, which continued to be under pressure as the dollar extended its recovery.

Financial equities were higher in Hong Kong, with the Hang Seng half a percent up by the time of this writing. Earlier in the day, China's manufacturing PMI came in at 51.3, falling short from an initially estimated 51.5 points.

Wall Street top three indexes extended losses for a second day in a row on Tuesday, with the Dow Jones industrial average falling 362.59 points to end at 26,076.89.

The S&P 500 left 1.1 percent behind to finish at 2,822.43, with health care as biggest loser. The Nasdaq composite dropped 0.9 percent to 7,402.48.

President Donald Trump’s State of the Union speech to the nation did not offer any news, despite focusing on a positive rhetoric regarding the economy.

"Since we passed tax cuts, roughly 3 million workers have already gotten tax cut bonuses – many of them thousands of dollars per worker," the Republican leader said.

"We will build gleaming new roads, bridges, highways, railways, and waterways across our land. And we will do it with American heart, American hands, and American grit."

<<< Asian Stock Indexes at 07:25 GMT >>>

Australia ASX S&P +11.20 +0.18% 6,146.50

Shanghai Composite -7.18 -0.21% 3,480.83

Hong Kong Hang Seng +171.93 +0.53% 32,779.22

Japan Nikkei 225 -193.68 -0.83% 23,098.29

Taiwan TSEC 50 Index +27.01 +0.24% 11,103.79

<<< Next in the Europe >>>

Investors will turn their heads to the release of German retail sales for December as of 07:00 GMT, the unemployment rate for January at 08:55 GMT and Eurozone’s consumer price index and employment data at 10:00 GMT.

<<< Next in the United States >>>

ADP nonfarm employment for January will be release at 13:15 GMT, with economists anticipating a 191,000 jobs creation. The employment cost index for the fourth-quarter will be available fifteen minutes later. Pending home sales for Dec are due for publishing at 15:00 GMT, with a 0.5 percent build seen.

Fort Financial Servics