Asian stocks lost ground for the fifth day in a row, making it the longest period of minus since last November. The yen strengthened on the central bank governor's statement that Japan could face higher rates. Chinese President Xi Jinping also depressed the markets, signaling a tolerance to a lower growth rate. The Australian dollar also fell, and oil fell.
The MSCI Asia Pacific index slipped 1% as of 12:22 in Tokyo, extending its biggest decline in ten months. Even worse, Japan's Topix contracted by 2,5 percent. The yen rose 0,3% to 101.01 against the US dollar. The Australian and New Zealand dollars lost at least 0,2% against the green note.
Central Bank Governor Haruhiko Kuroda, speaking yesterday, cited an April BOJ report that argued rates could rise 1 to 3 percentage points in a growing economy without compromising stability. The Chinese president has argued that the country will not sacrifice the environment to support growth in the short term.
Consumer-related companies and industrials led the decline in the Asian benchmark, which has gained 6 percent this year. Australia's S&P/ASX 200 slipped 0,8 percent, while the Philippine index lost 2 percent. In contrast, the South Korean Kospi which gained 0,3 percent.
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