By Chao Deng
Stocks in Japan and Australia finished lower Thursday as
investors took a cautious approach ahead of the European Central
Bank's decision on monetary policy.
The Nikkei Stock Average fell 0.3% to 15,676.18, snapping a
three-day winning streak, while the S&P/ ASX 200 closed down
0.4% at 5631.3.
Hong Kong's Hang Seng slipped by 0.1% to 25297.92, a day after
leaping to its highest close since May 2008.
An ECB meeting later in the day is expected to provide further
details about the bank's plans to start asset purchases, a move
that would work in favor of the dollar's strength.
Still, investors sold in Japan, as the country's central bank
left monetary policy unchanged Thursday and the dollar retreated
versus the yen after peaking above 105 yen Wednesday. As of the end
of Tokyo Stock Exchange trading, the dollar(USDJPY) was changing
hands at Yen103.87, from Yen104.80 late Wednesday in New York. A
weaker yen tends to support Japan's exporters and stock market.
The Nikkei has surged in recent weeks but may give back some of
those gains, said Daisuke Uno, strategist at Sumitomo Mitsui
Banking Corp. "Hedge funds had placed big bets on the cabinet
reshuffle as an 'event trade,' shorting the yen and buying
stock-index futures. Now that the event is over, the market is
returning to normal, with few trading cues on the horizon," he
said.
The appointment Wednesday of a new health, labor and welfare
minister, anticipated by the market, has boosted domestic stocks,
with local investors expecting the $1.2 trillion public pension
fund to invest more in the domestic market.
In Australia, Incitec Pivot fell 5.4% after it said drought in
New South Wales and southern Queensland states is crimping demand
for fertilizers, while wet weather farther north has delayed the
start of the sugar-cane season. Wotif.com dropped 4.6% after
Australia's competition regulator raised concerns about Expedia
Inc.'s(EXPE) bid for the Australian online accommodation and
flight-booking services company.
Chinese shares closed the highest level in more than 15 months.
The Shanghai Composite Index rose 0.8% to close at 2306.86.
(An expanded version of this report appears on WSJ:com
http://online.wsj.com/articles/asian-shares-mostly-flat-ahead-of-ecb-outcome-1409794974?mod=mktw.)
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