Caution dominates Asia bourses ahead of ECB meeting
Asian bourses retreated from multi-month highs in a mixed session as investors took a cautious stance ahead of a keenly anticipated monetary policy update from the European Central Bank.
Coming off a seven-month high, Japan’s Nikkei 225 Average fell 0.3 per cent. Hong Kong’s Hang Seng index also dropped 0.3 per cent, after surging 2.3 per cent on Wednesday – its biggest one-day gain in nearly two years – in response to reports suggesting that China’s services sector expanded last month.
The primary driver of the decline was investors locking in profits. Hopes are high that Mario Draghi, ECB president, will offer some dovish comments pointing towards more stimulus and even a first round of quantitative easing. Some analysts think Mr Draghi could cut interest rates further.
“[Mr] Draghi will strike a dovish tone, leaving all options on the table, but sovereign quantitative easing remains unlikely,” said analysts at Crédit Agricole.
Source: ft
