Asia Stocks Follow Wall St Losses On Stimulus Worries
HONG KONG,(APP - UrduPoint / Pakistan Point News - 22nd july,2016) - Asian markets fell Friday, tracking the Dow on Wall Street's first loss in six sessions, with traders disappointed by comments from central banks in Japan and Europe that caused them to roll back their stimulus hopes. Trading floors worldwide have been humming with excitement for the past few weeks, racking up trillions of Dollars in gains, as leaders promised measures to kickstart economies in the wake of Britain's shock EU exit vote. The upbeat outlook, strong US data and expectations Japan would unveil a huge stimulus -- reportedly worth 20 trillion Yen -- also sent the yen tumbling against the dollar. However, the Japanese unit soared Thursday after the BBC aired a month-old interview with Bank of Japan governor Haruhiko Kuroda in which he said therewas "no need and no possibility" for so-called helicopter money to be part of any package.
The strategy of helicopter money sees the bank funnel cash directly into the economy, such as putting cash straight into people's bank accounts, rathe than the more traditional bond-buying method. The Dollar plunged from levels above 107 yen to end Thursday at 105.76 yen.
On Friday it bought 105.85 yen. The "comments will disappoint investors who had been selling the yen in anticipation of the Bank of Japan announcing helicopter money at its meeting next week," Jasper Lawler, a London-based analyst at CMC Markets, said.