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Overseas Trading: Stimulus Letdown, Strong Yen Crush Japan Stocks

A surging yen weighed on Japanese automakers, while financial stocks are outperforming in Europe

Aug 3, 2016 at 8:37 AM
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It was another rough day for Asian stocks, as crude oil prices sagged -- with Japan once again leading the way lower. Specifically, disappointment over the the country's stimulus measures triggered a spike in the yen, pressuring automakers such as Toyota and Nissan -- though Honda stock bucked the trend lower on upbeat earnings. At the close, Japan's Nikkei had plunged 1.9%.

Following Tokyo's lead were Hong Kong's Hang Seng and South Korea's Kospi, which lost 1.8% and 1.2%, respectively. Conversely, China's Shanghai Composite managed a 0.3% win, despite data showing growth in the country's service sector stalled last month.

Stocks in Europe are also struggling amid the sell-off in crude oil, though financials are outperforming thanks to post-earnings pops for bank stocks HSBC and Societe Generale. Currently, the German DAX has edged about 0.1% lower, London's FTSE 100 is off 0.2% after growth in the U.K. services sector plunged to a seven-year low in July, and the French CAC 40 has given back 0.5%.

overseas trading august 3

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