Asia shares slip after Wall St losses, weak Europe data

HONG KONG: Asian markets retreated Friday following a second straight sell-off on Wall Street and worse-than-expected eurozone growth data.

Tokyo fell 1.70 percent by the break on the back of a stronger yen, while Sydney shed 0.46 percent, Seoul lost 0.43 percent. Hong Kong eased 0.61 percent after a six-day winning streak and Shanghai was flat.

A recent pick-up in equities took a knock after a string of weak first-quarter figures from Europe fuelled concerns about the strength of the region´s recovery.

Gross domestic product (GDP) across the 18-nation eurozone expanded just 0.2 percent in January-March, data agency Eurostat said, half the 0.4 percent that had been forecast.

Italy, the third-biggest economy in the bloc, shrank 0.1 percent in that period, while Portugal, which is about to emerge from a bailout, contracted 0.7 percent. Separately Eurostat confirmed eurozone inflation rose to 0.7 percent in April, up from the 0.5 percent reported in March but still well off the European Central Bank´s 2.0 percent target.

There was a bright spot, however, with Germany seeing growth double to 0.8 percent, beating market forecasts.

The data add to expectations that the European Central Bank will ease monetary policy conditions to kick-start growth in the region and soothe fears of deflation.

In the United States shares fell in response to weak corporate and economic figures. Retail giant Walmart spooked investors by saying earnings were down five percent in the first quarter compared with last year.

Also Thursday the Federal Reserve said industrial production fell 0.6 percent in April after two days of gains.

The Dow sank 1.01 percent and the S&P 500 slipped 0.94 percent just two days after each index had hit a record high. The tech-rich Nasdaq eased 0.76 percent.

The negative sentiment sent investors seeking out safer assets, sending the yen higher.

The dollar bought 101.53 yen in the morning compared with 101.57 yen late in New York and well off the 101.83 yen in Tokyo earlier Thursday.

The euro fetched 139.29 yen, a touch up from 139.26 yen in New York but also much lower than the 139.65 yen in Japan earlier. The euro was at $1.3715 against $1.3711.

Oil prices rose. The US benchmark, West Texas Intermediate (WTI) for June delivery, was up 28 cents at $101.78 in early Asian trading while Brent North Sea crude for July gained 25 cents to $109.34 per barrel.

Gold fetched $1,296.19 an ounce at 0230 GMT compared with $1,305.46 late Thursday. (AFP)
Source: The News Pakistan