Asian equity markets fell on Thursday, with Japan leading the losses, as investors were disappointed with the lack of an agreement of a Trans-Pacific Partnership (TPP) deal during President Obama’s visit to Tokyo.
“The fact that we haven’t got a TPP deal ultimately does impact economic data and new sources of economic growth. We care from a long-term strategic perspective. It’s tough to draw conclusions for shorter-term investment decisions but the fact is that investment portfolios at the end of the day are long-term decisions and longer term issues like trade deals do play an impact in that,” said Manpreet Gill, senior investment strategist at Standard Chartered Bank.
A negative lead from Wall Street also dampened the mood. U.S. stocks lost ground on Wednesday as investors booked profits on the S&P 500 and a five-day winning streak on the Nasdaq. Weak data also weighed on sentiment; new home sales declined 14.5 percent in March, marking the worst sales month since July.