Asian markets turn lower

Asian stocks turned lower yesterday, led by sliding Japanese equities, while a weaker dollar buoyed commodities such as gold and crude oil. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2% after rising by as much as 0.3% earlier to a six-week high.  The Nikkei pulled back 1.3%, hurt by a stronger yen. Financial markets in Hong Kong and China were closed for holidays. South Korea’s Kospi lost 0.3%. The index briefly rose to a 2016 high after the Bank of Korea unexpectedly cut its policy rate to a record low 1.25% amid weak inflation and stagnant exports. The BoK may also be looking to cushion the economy as the government drives a major overhaul of the struggling shipping and shipbuilding industries that could see large job losses. “Many expected the US Federal Reserve to hike rates in June or July but after the May (US) jobs data a June hike now seems impossible. The BoK probably thought taking action before the Fed’s rate hike would be safer,” said Lee Sur-bee, fixed income analyst at Samsung Securities. The greenback slipped 0.4% to 106.58 yen, nearing a one-month low of 106.35 hit on Monday in the wake of the jobs report. The euro rose to a one-month peak of $1.1416, with the latest uptick coming after the European Central Bank began buying corporate debt for its bond purchase programme in a bid to boost the eurozone economy. In commodities, US crude oil extended overnight gains to reach an 11-month high of $51.67 a barrel. In addition to a weaker dollar, supply worries caused by a sabotage of oil facilities in major producer Nigeria has boosted oil.  Brent crude rose as high as $52.86 a barrel, highest since October 2015. Spot gold advanced to a three-week high of $1,266.01 an ounce, while aluminium climbed to a one-month high of $1,614.50 a tonne. Copper also inched higher.