Asian Equities Fall Before ECB Stimulus Decision

Asian stocks fell even amid speculation the European Central Bank will boost stimulus through a sovereign-bond purchase program under the quantitative-easing strategy.

The MSCI Asia Pacific Index (MXAP) lost 0.1 percent to 134.46 as of 9:05 a.m. in Tokyo before markets open in China and Hong Kong. An ECB Executive Board proposal calls for as much as $1.3 trillion in asset purchases through the end of 2016, according to two euro-area central-bank officials who have seen the document. The Standard & Poor’s 500 Index added 0.5 percent and the Stoxx Europe 600 Index advanced 0.6 percent to extend a seven-year high yesterday.

“I’m not convinced that even a 1 trillion euro package will be enough to save the euro area,” said Matthew Sherwood, Sydney-based head of investment markets research at Perpetual Ltd., which has about $21 billion in funds under management. “It may be the case that this process has dragged on so long it’s mostly factored into financial market prices.”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.