Asia: Stocks end the week on downbeat note as ECB decision disappoints
Updated : 11:40
Asian stocks ended the week on a downbeat note, as investors were left disappointed by the latest round of stimulus measures introduced by the European Central Bank.
On Thursday, ECB president Mario Draghi announced the asset purchase programme will be extended to March 2017 from the original finish date of September 2016.
However, the ECB decided to keep asset purchases at €60bn a month, in a move that surprised analysts who had expected an increase to around €75bn.
“The ECB president’s failure to deliver what many investors and analysts thought he had - rightly or wrongly - promised looks like it might cast a pallor over the Christmas period, bringing to an end a positive run of trading,” said Spreadex’s financial analyst Connor Campbell.
Japan’s Nikkei Stock Average closed down 2.18%, recording its biggest one-day loss since 29 September, snapping a six-week string of weekly gains as it shares fell declined 1.9% this week.
The strengthening yen hurt Japanese exporters, with car makers in particular on the back foot, as Toyota Motor losing 1.72%, while Suzuki Motor and Mitsubishi both fell 2.84%.
There was better news on the macroeconomic front for Asia’s second largest economy, after figures released earlier in the session showed consumer confidence rose for the second consecutive month in November.
According to data from the Cabinet Office, the index monitoring consumer confidence rose from 41.5 to 42.6 last month, beating expectations for a 41.7 reading.
Elsewhere, Australia’s S&P/ASX 200 and South Korea’s Kospi fell 1.46% and 0.99% respectively, while Hong Kong’s Hang Seng Index slid 0.81%.
Meanwhile, the Shanghai Composite Index fell 1.67% as investors freed up capitals ahead of 10 public listings announced on Thursday, the first since Chinese officials lifted the ban on initial public offerings last month.
On the currencies front, the yen relinquished earlier gains and was down 0.17% against the dollar, while the Australian dollar lost 0.25% against its US counterpart.