The news that central bankers see no need for new stimulus to the US economy sinks Asian stock markets, which have fallen for the first time in four days. The Australian dollar also lost on the wave of negative data for the performance of the industrial services sector. The MSCI Asia Pacific Index fell 0,4% as of 9:41 am in Tokyo. The Standard & Poor's 500 futures index fell 0,2% 0.2 and South Korea's Kospi Index contracted 0,3%. On the currency front, the Australian dollar fell 0,2% against the dollar, while the won contracted against all 16 major currencies.
A March 13 Fed report, released yesterday, which called for a suspension of stimulus measures unless the US economy travels below its 2% target has proved fatal for stock markets. Just as data on Australian industrial services, which showed the fifth contraction in six months, hurt the Canberra dollar. The US will continue to grow against the Australian and New Zealand dollars”. The greenback is also at a one-week high against the euro, on the back of renewed confidence on the employment front. The Nikkei 225 Stock Average experienced no major swings, while the S&P/ASX 200 slipped 0,2 percent. Markets in China, Taiwan and Hong Kong were closed for holidays.
http://www.bloomberg.com/news/2012-04-04/asian-stocks-australian-dollar-drop-on-fed-won-falls.html
