Gains and Losses for Asian Stocks After Tech Drop

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Gains and Losses for Asian Stocks After Tech Drop

Asian stock markets witnessed mixed performance on Tuesday after Japan’s central bank failed to increase its monetary aid to the economy and sinking of tech shares affected prices.

Oil added 50 cents although it stayed below $101 per barrel amid news that supplies from Libya might increase.

The MSCI Asia Pacific Index shrunk 0.3% to 138.21 at 4:03 pm in Hong Kong influenced by the fall of 8 of the index’s 10 industry groups.

Benchmark Shanghai Composite Index of China advanced 1.3% to 2,086.39 and Hang Seng of Hong Kong surged 0.9% to 22, 574.30. Taiwan and Seoul stocks gained.

Regional heavyweight Nikkei 225 of Japan lost 1% to 14,665.53 as the country’s central bank refused to extend its highly soft monetary policy, according to ABC. The development comes at a time when a sales tax hike from 5% to 8% has raised concerns of possible slowed growth in consumer spending.

Topix of Japan dropped for the third day in a row, hitting its weakest point in three weeks as the yen steadied and healthcare and internet shares declined. The gauge lost 1.9% to 1,174.56 in Tokyo, its worst loss since March 14.

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Japan’s Takeda Pharmaceuticals Co. lost 5.2% after a US jury ordered the drug manufacturer to pay $6 billion as compensation over claims that it failed to disclose cancer risks associated with its Actos diabetes therapy to make more profits.

“Equity valuations have peaked and markets will trade nervously going forward. There is accelerating deterioration of China’s economy and financial system and subpar U.S. and Japanese economic growth,” John Vail of Nikko Asset Management Co told Bloomberg.

Kospi of Seoul advanced 0.2% to hit 1,993.49 as Taiex of Taiwan rose 0.1% to 8,880.70. Southeast Asia stocks were lower for the most part.

Australia’s S&P/ASX 200 went down 0.2% at 5,403.2 while New Zealand lost 1% to 5,361.42.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com