Asia stocks dip as banks are under pressure
On Friday, Asian stock extended their losses right to three-week lows and the yen surged to a 17-month high against the greenback. It’s because market participants bet Japan is going to be hard pressed to drag down its national currency amid widespread foreign opposition.
The broadest index of Asia-Pacific stocks outside Japan, MSCI edged down 0.5%, thus heading for a weekly dip of 1.8%.
Meanwhile, Japanese Nikkei pared its earlier losses to almost two-month lows, trading 0.6% lower and financials under great pressure. Currently, it’s on track for its weekly 3.1% descend.
Chinese Shanghai Composite Index fell 0.9%. By the way, it demonstrated the same decline last week. Additionally, the CSI 300 was deprived of 0.8%, setting for a 1.2% weekly sag. Apart from that, the Hang Seng index lost 0.7%, heading for a 1.9% weekly loss.
As for the European Union, in this region bank stocks definitely led in losses, following rumors of more cutbacks and layoffs planned by the EU’s key lenders, as they struggle with zero rates.