A surprise rate cut by the Bank of Korea failed to help Asian stocks, while ECB President Mario Draghi warned against delaying structural reforms
Asian stocks struggled today, with Japanese markets leading the way lower. Specifically, Japan's Nikkei dropped 1%, pressured by a stronger yen. As usual, the rising currency hit exporters in particular, with automakers Nissan and Toyota sliding 2.5% and 1.4%, respectively. Also pressuring stocks, core machinery orders for April fell a sharper-than-expected 11% month-over-month. In central bank news, Bank of Japan Deputy Governor Hiroshi Nakaso made a case for "decisive monetary easing," which he said was "absolutely essential" to overcoming deflation and sustained economic growth.
Elsewhere, South Korea's Kospi dipped 0.1%, despite the Bank of Korea unexpectedly cutting its policy interest rate for the first time in a year. Meanwhile, markets in China and Hong Kong were shuttered for the Dragon Boat Festival.
European stocks are following the bearish lead of their Asian peers, amid
persistent concerns over the global economy and warnings against delaying structural reforms from European Central Bank (ECB) President Mario Draghi. Specifically, London's FTSE 100 has sunk 0.9%, with the telecom sector dragged lower by Vodafone, following the sale of its New Zealand unit. Meanwhile, yields on the U.K.'s 10-year bond hit a record low ahead of the June 23 "Brexit" vote. Rounding things out, the French CAC 40 and German DAX are down 1% and 1.3%, respectively.
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