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Ben Bernanke’s remark drag Asian markets lower in early deals

23 May 2013 Evaluate

Asia pacific stocks are trading lower in early deals on Thursday on signs that the US Federal Reserve could soon start tapering off its massive stimulus measures after Federal Reserve Chief Ben Bernanke told Congress the Fed could scale back stimulus measures if economic conditions improved. Sentiments also got dented after Chinese factory activity shrank for the first time in seven months in May as new orders fell, adding to concerns that a recovery in the world’s second-largest economy is sputtering. The flash HSBC Purchasing Managers’ Index for May fell to 49.6, slipping under the 50-point level demarcating expansion from contraction for the first since October. The final HSBC PMI stood at 50.4 in April.

Hang Seng tumbled 381.34 points or 1.64% to 22,879.74, Jakarta Composite dropped 35.91 points or 0.69% to 5,172.09, KLSE Composite dipped 3.02 points or 0.17% to 1,780.86, Nikkei 225 crumbled 382.21 points or 2.45% to 15,245.05, Straits Times contracted 15.07 points or 0.44% to 3,439.30, KOSPI Composite declined 11.58 points or 0.58% to 1,982.25 and Taiwan Weighted was down by 122.06 points or 1.45% to 8,276.78.

On the flip side, Shanghai Composite was up by 1.52 points or 0.07% to 2,303.92.

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