US crude oil futures slipped back below $40 a barrel.
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Japanese government bonds suffered their worst sell-off in more than three years on fears the BOJ would slow its bond-buying.
Disappointment over Japan’s much-hyped stimulus package and falling oil prices weighed on investor interest in Asia on Tuesday, sending stock markets broadly lower.
Hong Kong’s Hang Seng Index slumped 1.7 per cent, led by a retreat in property developers, as trading resumed after the market was shut yesterday due to typhoon Nida.
The cabinet of Japanese Prime Minister Shinzo Abe on Tuesday afternoon approved a Yen28 trillion ($274 billion) stimulus package (http://www.marketwatch.com/story/details-of-abes-274-billion-japan-stimulus-package-emerge-as-cabinet-gives-its-ok-2016-08-02), which on paper ranks as one of the nation’s largest since the 2008 global financial crisis.
Australia’s central bank cut interest rates by a quarter of a percent to 1.5% as part of its efforts to battle against low inflation and low wage growth. This will be negative for Asian stocks today, “reflecting the negative response we’ve already seen in the USA and Europe overnight”, he said.
The stimulus package, which was outlined by Abe in a speech last Wednesday, includes 13.5 trillion yen in fiscal measures. “It’s really what’s going to dictate risk sentiment”.
The MSCI Asia Pacific Index dropped 0.9 percent to 135.71 as of 9:04 a.m.in Tokyo. Japan’s Nikkei .N225 lost 1.4 percent as the rising yen pressured exporter stocks while financials slid 2.7 percent.
The package includes ¥7.5 trillion in spending by the national and local governments, and sets aside ¥6 trillion from the Fiscal Investment and Loan Programme, which is not included in the government’s general budget.
The dollar/yen was at 101.77 U.S.as of late afternoon. The cheaper oil prices are having a flow-on effect to commodities with a Bloomberg raw-materials gauge at the lowest level since early May, hurting many Asian share measures.
Her link to a notorious anti-Korea group was acknowledged by a court this year in a defamation case she lost. Credit Suissefell 5.6 percent and Deutsche Bank 3.2 percent after index provider STOXX said the two banks would be dropped from Europe’s STOXX Europe 50 index from next Monday.
The development added to bearishness among investors already disappointed by Japan’s stimulus package on Tuesday.
Ten-year Treasuries yielded 1.54 percent following a seven basis-point increase last session.
West Texas Intermediate crude climbed 0.6 percent to $40.29 a barrel after sliding to its lowest settlement price since April 18 on Monday.
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Copper advanced 0.3 percent, while aluminum gained 0.1 percent and nickel rallied 0.8 percent. Nigeria has also resumed payments to former militants as the government seeks to establish a cease-fire after attacks cut the country’s oil output to the least since 1989.
