Shares in Asia declines after Abe unveils new policies

By HY Markets Forex Blog

Shares in Asia dropped on Wednesday as stocks declined, after the Prime Minister Shinzo Abe revealed new policies and long-term growth prospects to boost the growth of the economy. From the stock market and energy market to agriculture, tax breaks, foreign investment and capital.

Tokyo’s Nikkei 225 slipped 2.45% to 13,202.38, while Topix slipped 1.91% to 1,103.98, both as of 5:21am GMT.

The Hang Seng dropped 1.02% to 22,057.77, while China’s Shanghai Composite slipped 0.16% to 2,268.05 and South Korea’s Kospi index slipped by 1% .

Hong Kong’s property company, Henderson Land had the biggest lost in shares of 12.91%, while Aia Group slipped by 2.82%.

The new strategies from the Japanese prime minister are still uncertain about the effect of the monetary stimulus on the risk assets.

“Now is the time that Japan becomes the driving force of the global economy,” Prime Minister Shinzo Abe stated.

“The goal of Abenomics is to spread the fruit of the growth in the real economy to hard workers, not a shortsighted money game,” Abe added.

The Chinese stocks declined at the early hours of the trade, while investors and the markets continue to raise concerns and worries regarding the possibility that the U.S Federal Reserve (Fed) would ease off on the plan of bond purchases.

Fed Bank of Kansas City President Esther George stated that the central bank should slow the bond-buying program, so did the San Francisco President John Williams, as she also mentions an adjustment and slowdown in bond purchases later this summer.

Analysts at Deutsche Bank and Goldman Sachs Group predicted that the Fed could begin to reduce its stimulus program later this summer.

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