Japanese stocks led a broad retreat across Asia early Thursday, highlighted by falls in electronics and auto stocks, following U.S. stock selloffs overnight as concerns grow about the strength of the U.S. economy and corporate earnings.
Continuing uncertainty over global trade and the Middle Eastern situation are also weighing. The Nikkei
NIK, -2.80%
is down 3.4%.
While concerns are growing that the Bank of Japan’s prolonged easing may be causing financial overheating, BOJ Deputy Gov. Masazumi Wakatabe says it is still debatable whether the central bank should tighten monetary policy as a pre-emptive measure against rises in asset prices. “Although we should not ignore asset price fluctuations completely, taking a strong measure to burst the bubble could push the economy into a serious recession,” he said in a speech at a Japanese university, looking back at Japan’s financial crisis in the 1990s.
China stocks, which had been the leaders of the pack in Asia for much of the week, were down again Thursday but were showing losses only about half as big as in Japan. The Shanghai composite
SHCOMP, -1.74%
was down about 1.5% while Hong Kong
HSI, -1.93%
stocks were falling 2%.
China will do ‘whatever it takes’ to stop its falling stock market.
‘This is just the start’ — Fund managers react to China stock rout.
South Korea’s GDP posted a 0.6% rise for the quarter and was 2% higher year over year. South Korea’s economy was lackluster in the quarter ended in September, as shrinking investment in business and construction offset gains in exports and private consumer spending. South Korea’s Kospi
SEU, -2.19%
was 2% lower Thursday.
Australian Treasurer Josh Frydenberg welcomed Fitch Rating’s reaffirmation of the country’s AAA sovereign rating. It ensures Australia remains in an elite club of top-rated countries, now numbering just 10. Fitch notes, the Australian government’s commitment to returning the budget to balance by 2019-20 and surplus by 2020-21 and “forecasts that these targets will be achieved”. Australian stocks
XJO, -2.11%
were losing 1.8% in morning trading.
This story was compiled from Dow Jones Newswires reports.
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Source : MTV
