Asian stocks fell for the first time in five days ahead of Chinese manufacturing data, which are expected to decline. If this were the case, it would be further confirmation of the slowdown of the second world economy. The MSCI Asia Pacific index lost 0,2% to trade at 137.72 as of 9:27am in Tokyo. The measure fell by 2,4% in the quarter ended yesterday and rose by 0,1% in March. Of note is the statement by Fed chair Janet Yellen who said that the US economy will need stimulus for "some time".
"China's manufacturing performance is a key driver today," said Mark Lister, head of private wealth research at Craigs Investment Partners in Wellington. “One of the big problems weighing on global markets is the Chinese slowdown and the doubt whether this will lead to a continuation of the policy of stimulus to the economy. Yellen had to take a few steps back and her softer position was welcomed.”
Utilities were the hardest hit industry group. Hokkaido Electric Power lost 5,9% in Tokyo on news that the Development Bank of Japan will inject 50 billion yen into the Japanese utility. Prana Biotechnology plunged 75% after the Australian biotech company said its experimental drug to treat Alzheimer's failed to test patients.
On the index front, Japan's Topix fell 0,2% after the quarterly Tankan among major industrial groups rose less than expected in the first quarter. Tokyo raised its sales tax from 5% to 8% today. The yen was barely changed against the dollar after shedding 0,4% yesterday. South Korea's Kospi index lost 0,2%, while Australia's S&P/ASX 200 slipped 0,7% on a day when economists expect the Australian central bank to hold the overnight cash-rate at 2,5 .XNUMX percent.
