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Morgan Stanley Composite Index (MSCI) Asia Pacific (APAC) fell 1.6% to 136.30. This happened after China reported higher inflation than forecast. As well as the U.S. Central Bank the Fed's quantitative easing program worth U.S. $ 600 billion will expire in June.
Asian stocks crash, closed slumped in trading Thursday (12 / 5). This is due to falling commodity prices and fears that China will tighten policy because inflation pressures.
MSCI APAC, year-to-date, up 0.5% and the PER is at 13.6 times. Japan's Nikkei Exchange fell by 1.5%, Kospi in South Korea 2%, the Hang Seng in Hong Kong 1.1% and 1.8% Australia stock. Futures on the Standard & Poor's 500 index fell 0.3% today.
"The market is always struggling with the tightening cycle. China's inflation data happen to coincide at the end of quantitative easing that sustains asset markets and commodities, "said James Holt, director of BlackRock Investment Management (Australia) Ltd.. in Sydney.
Optical equipment manufacturer, Olympus Corp.., Fell 5.6% after reporting earnings declined 85% due to decreased sales. Producers at Citizen Holdings Co. dropped 7.3% as net annual income 27% below the company forecast.
The world's largest mining company, BHP Billiton Ltd., Down 2.6% due to metal prices slumped on the New York market. Rival the world's second largest mining company, Rio Tinto Group, declined 2%. Jiangxi Copper Co.., China's largest copper company, fell 2.4%.
Korea Zinc Co.. fell 5.7% in Seoul. Japan's largest commodity trader Mitsubishi Corp.., Declined 2%. Shares of energy and raw materials led the decline after crude oil for June dropped 5.5% to U.S. $ 98.21 per barrel. Copper fell to its lowest level in five months.
S-Oil Corp. down 6.3%. SK Innovation Co. fell 4.7%. In Sydney, Caltex Australia Ltd. that Australia's largest oil refinery, fell 1.3%.
"Volatility in oil prices and fears of China's policy direction to increase investor concerns. Perception of the risk of China's growth increases, market adjustments, "said Tim Schroeders, Manager Pengana Capital Ltd. in Melbourne.
The index of six metals including copper and aluminum, the London Metal Exchange, down 1.9% yesterday, the first time in four days. "Inflation causes of risk aversion. This is the main reason for the weakening of commodity markets, "said Mitsushige Akino of Ichiyoshi Investment Management Co..
China's consumer price index rose 5.3% compared to same period previous year. Banks extend loans in local currency amounted to 740 billion yuan or U.S. $ 114 billion. Chinese officials have stated, the policy will focus on ways to cope with inflationary pressures.
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Posted in: Asian stocks slammed China Inflation
