Asian stocks makes a soft start on concern of the Central Banks

Asian markets have made a soft start on Friday erasing this week’s gain as rate cut in Europe and China fail to satisfy the investors that the decision is not enough to boost economic growth.  The ECB had slashed the interest rate to record low of 0.75% while Bank of China cut interest rate for the second time within two months. Meanwhile Bank of England did not cut any interest rate but decided to increase an amount of its asset purchase plan by 50 billion pounds.

Nikkei fell for the second day erasing its weekly gain as reports of rate cut in Europe and China did not boost investor’s confidence.  Shanghai Composite slide for the third consecutive day on the fear that nation’s economic growth is slowing down in spite of rate cut by Bank of china for the second time in two month. Hang Send Index dropped from two month’s high after China cut its interest rate leading to declining in Bank Stocks due to low outlook of future earnings.

Shanghai Composite was down by 12.01 points or 0.55% to 2189.34, KLSE Composite declined 0.31 points or 0.01% to 1614.34, Nikkei dipped by 38.27 points or 0.42% to 9041.56. Strait Times declined by 12.06 points or 0.41% to 2959.49. Kospi Composite Index shed 12.93 points or 0.69% to 1862.37. Taiwan Weighted plummeted 42.83 points or 0.58% to 7344.76.Hang Seng index fell 70.59 points or 0.36 % to 19783.54 and Jakarta Composite dipped 1.17 points or 0.02 % to 4067.55.