AFP/Tokyo
Asian shares slipped yesterday but the euro held onto recent gains amid hopes of European Central Bank action to rein in surging eurozone borrowing costs and ahead of talks on debt-ridden Greece.
Chinese stocks slipped 0.50%, or 10.56 points, to 2,107.71 yesterday
Investors were also keenly awaiting minutes for the Federal Reserve’s most recent meeting to be released later yesterday, which will be scrutinised for clues about the direction of US monetary policy.
Tokyo fell 0.27%, or 25.18 points, to 9,131.74 after Japan reported a wider-than-expected trade deficit in July as exports to Europe and Asian neighbours plunged.
Sydney dipped 0.17%, or 7.4 points, to close at 4,376.0, as mining giant BHP Billiton delayed expansion of its massive Olympic Dam copper and uranium mine after posting a near 35% slump in annual net profit.
Seoul fell 0.41%, or 8.03 points, to 1,935.19, Hong Kong was down 1.06%, or 212.31 points, to 19,887.78, while Shanghai slipped 0.50%, or 10.56 points, to 2,107.71.
Elsewhere, Taipei fell 0.14%, or 10.23 points, to 7,496.58; Wellington was down 0.80%, or 26.36 points at 3,658.38; Bangkok rose 0.15%, or 1.85 points, to 1,234.14; Kuala Lumpur gained 0.15%, or 2.46 points, to 1,652.25; Singapore slipped 0.53%, or 16.30 points, to 3,049.47, and Manila fell 1.05%, or 54.66 points, to 5,152.15.
Jakarta was closed for a public holiday.
“People are realising that markets have recently seen some highs and they are banking some profits ahead of risk events,” Justin Harper, markets strategist at IG Markets in Singapore, told Dow Jones Newswires.
European stock markets rebounded on Tuesday and the euro jumped back above $1.24 overnight as investors remained hopeful of central bank action over the eurozone crisis and cheered Spain’s latest debt auctions.
The markets had lost ground on Monday after Germany and the European Central Bank dampened rumours of intervention to drive down borrowing costs.
