Overseas Trading: Earthquake Shakes Japan; Euro Slides on Draghi

Natural disasters weighed on markets across Asia

by Kirra Fedyszyn

Published on Oct 21, 2016 at 8:50 AM

It was a tough finish for stocks in Asia, as most markets sank amid a string of natural disasters. Hong Kong's Hang Seng was shuttered in preparation for Typhoon Haima, which has already resulted in severe damage and casualties in the Philippines. Meanwhile, an earthquake injured at least seven in Japan, though markets remained open.

Specifically, Japan's Nikkei shed 0.3% for the day, erasing earlier gains as the yen strengthened. That said, major automakers sped higher, led by Mitsubishi, while Nintendo suffered after the disappointing reveal of its upcoming Switch video game system. Elsewhere in the region, South Korea's Kospi slid 0.4%, but China's Shanghai Composite managed a 0.2% gain, despite a record rise in housing prices for September raising fears of a bubble.

Thursday's comments from European Central Bank (ECB) President Mario Draghi sent the euro sliding to its lowest level against the U.S. dollar since March. Draghi refused to give any credence to speculation the ECB could begin tapering its asset purchase program, deferring to the Dec. 8 meeting. Meanwhile, stocks in the region are mixed, with London's FTSE 100 up 0.3% -- as British American Tobacco rallies on news it's looking to buy outstanding shares of Reynolds American, Inc. (NYSE:RAI) for $47 billion. Elsewhere, Germany's DAX is just above breakeven, while France's CAC 40 is off 0.1%. 

overseas stocks october 21

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