Asian stocks dip over fears about stimulus measures
Source: AFP |
June 13, 2013, Thursday
|
Print Edition
Print Edition
ASIAN markets fell in holiday-reduced trade yesterday, as the Bank of Japan's refusal to unveil any fresh stimulus measures raised concerns about central banks' role in supporting the world's economies.
The greenback managed to claw back some ground in forex business but remains stuck around 6 percent below its peaks seen at the end of last month.
Tokyo fell 0.21 percent, or 28.30 points, to 13,289.32 following a 1.45 percent loss on Tuesday, although it pared most of the earlier losses thanks to a pick-up in the US dollar through the day.
Sydney fell 0.69 percent, or 32.6 points, to 4,724.5, while Seoul skidded 0.56 percent, or 10.77 points, to 1,909.91 and Wellington dipped 0.48 percent, giving up 21.45 points to close at 4,442.12.
Trade was limited, however, with Hong Kong, Shanghai, Taipei and Manila all closed for public holidays.
The Bank of Japan said on Tuesday the Japanese economy was "picking up," but while it warned of possible headwinds caused by weakness in key export markets it chose not to add to April's giant bond-buying splurge.
The decision reignited fears about other central banks' stimulus plans, with the US Federal Reserve signaling it wanted to draw up a plan to wind down its own huge US$85 billion-a-month stimulus scheme.
"Stock market rises globally have been fueled for so long in one way or another by government monetary easing programs that any talk of their termination seems to result in knee-jerk reactions," said Daisuke Uno, strategist at Sumitomo Mitsui Banking Corp.
"What the BoJ announced was not really new, nor dramatic, and largely applied to the bond market, but stocks are inextricably tied to currency market movements."
He added: "The case can be made that the US dollar is in line for a retracement after running up from below 80 yen to well over 100 yen in the last several months."
On forex markets, the US dollar bought 96.76 yen in Tokyo, compared with 96.01 late in New York.
The greenback managed to claw back some ground in forex business but remains stuck around 6 percent below its peaks seen at the end of last month.
Tokyo fell 0.21 percent, or 28.30 points, to 13,289.32 following a 1.45 percent loss on Tuesday, although it pared most of the earlier losses thanks to a pick-up in the US dollar through the day.
Sydney fell 0.69 percent, or 32.6 points, to 4,724.5, while Seoul skidded 0.56 percent, or 10.77 points, to 1,909.91 and Wellington dipped 0.48 percent, giving up 21.45 points to close at 4,442.12.
Trade was limited, however, with Hong Kong, Shanghai, Taipei and Manila all closed for public holidays.
The Bank of Japan said on Tuesday the Japanese economy was "picking up," but while it warned of possible headwinds caused by weakness in key export markets it chose not to add to April's giant bond-buying splurge.
The decision reignited fears about other central banks' stimulus plans, with the US Federal Reserve signaling it wanted to draw up a plan to wind down its own huge US$85 billion-a-month stimulus scheme.
"Stock market rises globally have been fueled for so long in one way or another by government monetary easing programs that any talk of their termination seems to result in knee-jerk reactions," said Daisuke Uno, strategist at Sumitomo Mitsui Banking Corp.
"What the BoJ announced was not really new, nor dramatic, and largely applied to the bond market, but stocks are inextricably tied to currency market movements."
He added: "The case can be made that the US dollar is in line for a retracement after running up from below 80 yen to well over 100 yen in the last several months."
On forex markets, the US dollar bought 96.76 yen in Tokyo, compared with 96.01 late in New York.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
