Asian stocks fall mid Japan concern

on 20/09/2012 07:10:47

Asian stock markets turned lower today after weak Japanese trade figures underlined that the global economy continues to struggle.

The Japanese data showed that the country's powerhouse export sector was continuing to suffer the effects of a slowdown in Europe and elsewhere.

Exports in August totalled 5.05 trillion yen (€49.1bn), down 5.8% from a year earlier, the Japanese Finance Ministry said. Imports were also down. Exports to Europe sank 28%.

Japan's Nikkei 225 index fell 0.7% to 9,170.16. South Korea's Kospi shed 0.5% to 1,997.26 and Hong Kong's Hang Seng lost 0.4% to 20,751.04.

Asian stocks had rallied a day before, after the Bank of Japan announced an aggressive monetary easing programme in an attempt to spur growth and counter the strength of the Japanese yen.

But the market impact of the Bank of Japan's move was short-lived, a possible sign that investors are getting stimulus-wary.

The Bank of Japan's move came days after the US Federal Reserve revealed it will purchase an average of US$40bn (€38.88bn)of mortgage-backed securities a month until the economy shows significant improvement.