Asian equity markets ended mostly lower on Friday, with the oil price downturn and fading BOJ stimulus expectations weighing on markets. The European Central Bank made no changes to its monetary policy on Thursday and ECB President Mario Draghi gave no hints of future action, disappointing investors hoping for more easing measures in September. Japanese shares led regional declines as Draghi's comments at ECB press conference and Kuroda's remarks tempered stimulus hopes. BOJ Governor Haruhiko Kuroda's remarks in a BBC Radio 4 interview quashed expectations that Japan might be preparing to take radical ‘helicopter money’ economic stimulus steps, under which the central bank would finance government budgets to fight deflation. Kuroda's comments sent the yen to six-week lows against major counterparts, and gave investors a reason to sell shares. Further, Chinese shares retreated after Sheng Songcheng, director of the Survey and Statistics Department at the People's Bank of China, reportedly said that enterprises were caught in a liquidity trap and regulators should focus more on fiscal policy adjustments.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 3,012.82 | -26.19 | -0.86 |
Hang Seng | 21,964.27 | -36.22 | -0.16 |
Jakarta Composite | 5,197.25 | -19.72 | -0.38 |
KLSE Composite | 1,657.42 | -0.12 | -0.01 |
Nikkei 225 | 16,627.25 | -182.97 | -1.09 |
Straits Times | 2,945.35 | 4.87 | 0.17 |
KOSPI Composite | 2,010.34 | -1.88 | -0.09 |
Taiwan Weighted | 9,013.14 | -43.42 | -0.48 |