Asian stock open mostly lower led by financial sector losses

Asian stocks opened with mixed performance but mostly lower today, with major losses in the financial sector due to the inversion of the US bond yield curve, to see the Japanese, Chinese, Australian and the New Zealand's stocks falling, while Hong Kong's Hang Seng stabilized after the resumption of flights in Hong Kong's largest airport following the pro-democratic protests and strikes there.

Concerns mounted over the US economy recession after the two-year and 10-year bond yield curve inversion for the first time since 2007.

Yesterday, the German GDP reading showed that it shrank by 0.1% in Q2, vs growth by 0.4% in Q1, and unemployment rates rose in July, which has raised worries over the largest European economy slowing down due to trade protectionism.

The US Treasury announced last Tuesday the delay of the 10% tariffs increase decision on Chinese imports until December 15 instead of September 1st, and Trump stated that communications with the Chinese side have been constructive and the decision is due to the holiday season because the tariffs have an impact on shopping.

Japanese stocks retreated today, with the Topix index falling by 1.18% or 17.62 points and hit 1,481.88, while Nikkei 225 shed 1.21% or 250.21 points to 20,404.92.

Chinese stock indices also fell, with CSI 300 shedding 0.64% or 23.48 points to 3,658.92, the Shanghai Composite fell by 0.74% or 20.87 points to 2,788.04.

Hong Kong's Hang Seng rose by 0.02% or 5.67 points to 25,307.95, while New Zealand's NZX 50 index fell by 1.10% or 118.85 points to 10,730.90, and Australia's S&P/ASX 200 index fell by 2.20% or 144.80 points to 6,451.10.