Asian stocks fall, Yen drops on Kuroda

FXStreet (Mumbai) - Asian stocks were hit by the overnight risk aversion on Wall Street and European stocks as investors await the FOMC rate decision and eye Eurozone finance ministers’ meeting over Greece. The Japanese Yen fell after BOJ’s Kuroda said he did not intend to influence the exchange rate last week.

The MSCI Asia Pacific Index fell a second day, losing 0.4%. The Shanghai Composite fell 2%, while Hang Seng declined 0.5%. Australia’s ASX reversed an earlier drop to advance 0.6%, led by telephone and financial stocks.

Meanwhile, the Nikkei fell 0.63%; unable to recover losses even though the Yen weakened on Kuroda’s comments. The USD/JPY pair rose to 123.80 after Bank of Japan Governor Haruhiko Kuroda told parliament Tuesday that he hadn’t meant to predict a future nominal exchange rate when discussing the yen’s recent weakness last week.

In the overnight trade, the DJIA fell 0.60%. At the moment, the S&P futures are down 0.17%. The 10-year treasury yield currently trades at 2.349%.

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