Asian shares traded broadly lower Friday, as investors were disappointed by the European Central Bank’s decision to leave its €1.7 trillion ($1.9 trillion) stimulus unchanged at a policy meeting Thursday.
Australia’s S&P/ASX 200 XJO, -0.85% was down 0.6% and South Korea’s Kospi SEU, -1.61% slid 1.2%. China’s Shanghai Composite Index SHCOMP, +0.02% was about flat. Japan’s Nikkei Stock Average NIK, +0.15% was last trading 0.1% lower after the yen appreciated against the U.S. dollar. A stronger yen makes Japanese exporters less competitive.
The South Korean won tumbled within minutes of headlines that North Korea may have conducted a nuclear test. The possibility of a sanctions-breaching test arose after a shallow 5.3 magnitude earthquake was detected near North Korea’s nuclear test site. The South Korean won fell as low as 1,103.0 to the U.S. dollar, representing a 0.9% fall from its Thursday closing level of 1,092.6.
Hong Kong’s Hang Seng Index HSI, +0.96% rose 0.4%, after a Chinese regulator said Thursday it will allow domestic insurers to invest in Hong Kong-listed stocks through a trading link with Shanghai. The China Insurance Regulatory Commission’s announcement came less than a month after the unveiling of the Shenzhen-Hong Kong Stock Connect program, set to begin later this year.
Asian markets’ weak start Friday also took cues from the ECB’s non-action Thursday, which fed into views that central banks globally were stepping back from their many aggressive market-boosting measures.
“It seems the recent deterioration in survey and inflation data is still not enough to push the ECB to ease further,” said Timothy Graf, head of macro strategy at State Street Global Markets EMEA.
“We were expecting some language that would help prepare the market for easing later this year.”
The ECB also said it wouldn’t immediately extend its bond-buying program. That lead to a selloff in U.S. bonds, sending the 10-year yield to 1.61% from around 1.53%.
The Fed and BOJ decide on monetary policies on Sept. 21.
The Bank of Korea kept its base rate unchanged for a third straight month on Friday, while the latest data from China showed consumer inflation slowed in August. India is scheduled to issue data on industrial production later Friday.
Brent was trading 0.9% lower at $49.52 a barrel, and gold was trading 0.1% higher.
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
Australia’s S&P/ASX 200 XJO, -0.85% was down 0.6% and South Korea’s Kospi SEU, -1.61% slid 1.2%. China’s Shanghai Composite Index SHCOMP, +0.02% was about flat. Japan’s Nikkei Stock Average NIK, +0.15% was last trading 0.1% lower after the yen appreciated against the U.S. dollar. A stronger yen makes Japanese exporters less competitive.
The South Korean won tumbled within minutes of headlines that North Korea may have conducted a nuclear test. The possibility of a sanctions-breaching test arose after a shallow 5.3 magnitude earthquake was detected near North Korea’s nuclear test site. The South Korean won fell as low as 1,103.0 to the U.S. dollar, representing a 0.9% fall from its Thursday closing level of 1,092.6.
Hong Kong’s Hang Seng Index HSI, +0.96% rose 0.4%, after a Chinese regulator said Thursday it will allow domestic insurers to invest in Hong Kong-listed stocks through a trading link with Shanghai. The China Insurance Regulatory Commission’s announcement came less than a month after the unveiling of the Shenzhen-Hong Kong Stock Connect program, set to begin later this year.
Asian markets’ weak start Friday also took cues from the ECB’s non-action Thursday, which fed into views that central banks globally were stepping back from their many aggressive market-boosting measures.
“It seems the recent deterioration in survey and inflation data is still not enough to push the ECB to ease further,” said Timothy Graf, head of macro strategy at State Street Global Markets EMEA.
“We were expecting some language that would help prepare the market for easing later this year.”
The ECB also said it wouldn’t immediately extend its bond-buying program. That lead to a selloff in U.S. bonds, sending the 10-year yield to 1.61% from around 1.53%.
The Fed and BOJ decide on monetary policies on Sept. 21.
The Bank of Korea kept its base rate unchanged for a third straight month on Friday, while the latest data from China showed consumer inflation slowed in August. India is scheduled to issue data on industrial production later Friday.
Brent was trading 0.9% lower at $49.52 a barrel, and gold was trading 0.1% higher.
Click here for Free Signals OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
No comments:
Post a Comment