ZCZC
BCN-03
ASIA-MARKETS-STOCKS
Asia stocks open lower on fears over US growth
TOKYO, July 30, 2018 (BSS/AFP) – Asian markets opened lower Monday,
following Wall Street’s downbeat finish last week on fears that US economic
growth has peaked, and with investors watching the Bank of Japan’s meeting.
On Friday, data showed the US economy expanded at an annual rate of 4.1
percent in the second quarter, matching analyst expectations.
The rise was due in part to strong consumer spending and a trade-war
driven bump in exports. It was the fastest growth in almost four years.
But despite US President Donald Trump hailing the figure as an “American
economic miracle”, US investors were unimpressed, sending stocks lower on a
sense that the figures represent a peak.
US shares also took a battering from a largely disappointing round of
earnings, with Exxon Mobil, Intel and Twitter all falling.
In Asia stocks trading Monday, Japan’s benchmark Nikkei 225 index opened
down 0.46 percent, while the broader Topix index slipped 0.26 percent.
Investors are closely watching the Bank of Japan’s two-day meeting
starting Monday, with widespread speculation about whether the central bank
may be looking to alter its ultra-loose monetary policy.
Reports earlier this month suggested minor changes were possible in the
bank’s bond-buying programme, as it seeks to offset its effects on the
banking sector.
The BoJ has engaged in massive bond-buying as part of a programme to push
the country’s inflation rate up to 2.0 percent, seen as necessary to
turbocharge the world’s third-largest economy.
But the goal has proved stubbornly elusive and experts said the BoJ might
reset expectations on when it could be achieved.
“The BoJ will most likely dole out a plan for eventually adjusting
stimulus,” wrote Stephen Innes, head of APAC trading at OANDA.
He cited a report suggesting the bank would revise its inflation forecast
down, and “forgo any immediate yield curve measure”.
MORE/HR/0928
ZCZC
BCN-04
ASIA-MARKETS-STOCKS 2 LAST TOKYO
China’s stock markets also opened lower as the yuan continued to weaken,
with the benchmark Shanghai Composite Index opening down 0.06 percent, though
it picked up.
Markets in Sydney and Seoul also opened lower.
In currency trading, the dollar was rangebound after the US GDP data
announcement and with investors focused on monetary policy meetings by the
BoJ and other central banks this week.
“It’s going to be a ‘central-bank’ week… and the market is paying close
attention to the BoJ,” said Masakazu Satou, senior analyst at Gaiame Online.
“I don’t think the BoJ will change its policy dramatically, but it may
send a message indicating its willingness to mitigate the negative impact of
the current policy,” Satou told AFP.
– Key figures at 0200 GMT –
Tokyo – Nikkei 225: DOWN 0.58 percent at 22,581.32
Hong Kong – Hang Seng: DOWN 0.22 percent at 28,741.54
Shanghai – Composite: UP 0.51 percent at 2,888.16
London – FTSE 100: UP 0.5 percent at 7,701.31 (close)
Euro/dollar: DOWN at $1.1653 from $1.1658
Pound/dollar: DOWN at $1.3102 from $1.3107
Dollar/yen: UP at 111.05 from 110.99 yen
Oil – Brent Crude: DOWN 10 cents at $74.19 a barrel
Oil – West Texas Intermediate: UP 20 cents at $68.89 a barrel
New York – Dow Jones: DOWN 0.3 percent to 25,451.06 (close)
New York – S&P 500: DOWN 0.7 percent to 2,818.82 (close)
BSS/AFP/HR/0930