Asian Shares Decline as Stronger Yen Weighs on Nikkei
By Daniel Inman
Asian stocks fell on Thursday, with Japan leading the region lower as Tokyo was weighed by a stronger yen.
The Nikkei was down 1.4% in early trade, as the dollar edged lower against the yen--at one point trading below the Yen102 mark at 101.98. The dollar was last at Yen102.03, compared with Yen102.06 late Wednesday in New York.
The yen started to firm up during Asian trade on Wednesday, after the World Bank reduced its global growth forecast. The negative sentiment carried on in European and U.S. trading, where Wall Street ended the day with a loss, with the dollar losing further ground against the yen. A stronger Japanese currency is generally seen as a headwind for local exporters.
In Australia, the S&P/ASX 200 lost 0.3%, as the market waited for employment data out later in the session, where a slight rise in the unemployment rate to 5.9% from 5.8% is expected, according to economists surveyed by The Wall Street Journal.
Miners in Australia were under pressure as iron ore prices lost further ground, with Rio Tinto 0.5% lower and Fortescue Metals Group down 2.9%.
"Our local benchmark has continually stumbled in recent sessions as the commodity slump piles misery on our miners," said Niall King, a sales trader at CMC Markets.
Elsewhere in Asia, South Korea's Kospi was 0.2% lower.
Robb Stewart contributed to this article.
Write to Daniel Inman at daniel.inman@wsj.com
(END) Dow Jones Newswires
June 11, 2014 21:36 ET (01:36 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.DN201406110134242014-06-12 01:36:00.00034H6IM7P3BMVKS06AHR1GSFF9BDJNF
By Daniel Inman
Asian stocks fell on Thursday, with Japan leading the region lower as Tokyo was weighed by a stronger yen.
The Nikkei was down 1.4% in early trade, as the dollar edged lower against the yen--at one point trading below the Yen102 mark at 101.98. The dollar was last at Yen102.03, compared with Yen102.06 late Wednesday in New York.
The yen started to firm up during Asian trade on Wednesday, after the World Bank reduced its global growth forecast. The negative sentiment carried on in European and U.S. trading, where Wall Street ended the day with a loss, with the dollar losing further ground against the yen. A stronger Japanese currency is generally seen as a headwind for local exporters.
In Australia, the S&P/ASX 200 lost 0.3%, as the market waited for employment data out later in the session, where a slight rise in the unemployment rate to 5.9% from 5.8% is expected, according to economists surveyed by The Wall Street Journal.
Miners in Australia were under pressure as iron ore prices lost further ground, with Rio Tinto 0.5% lower and Fortescue Metals Group down 2.9%.
"Our local benchmark has continually stumbled in recent sessions as the commodity slump piles misery on our miners," said Niall King, a sales trader at CMC Markets.
Elsewhere in Asia, South Korea's Kospi was 0.2% lower.
Robb Stewart contributed to this article.
Write to Daniel Inman at daniel.inman@wsj.com
(END) Dow Jones Newswires
June 11, 2014 21:36 ET (01:36 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.DN201406110134242014-06-12 01:36:00.00034H6IM7P3BMVKS06AHR1GSFF9BDJNF
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