Asian stocks go down despite reflation pullback easing

Asian stocks

Investors maintain their distance from Asian equities at the end of the week even though the global pullback in other reflation trades has eased.

A drop in the S&P 500 index hampered equities from indexes across Asia. After a revitalized trend fueled by optimism that the economy of the United States can stand against higher interest rates, investors pulled back from reflation trades.

According to U.S. President Donald Trump, his administration will soon reveal a “phenomenal” tax policy which sparked a rally in stocks, the dollar and emerging-market assets.

The Federal Reserve vice chairman, Stanley Fischer, said that the economy of the United States is close to accomplishing the central bank’s employment and inflation goals, meaning the Fed could increase rates by three times this year. His views are in parallel with Janet Yellen’s comments to Congress this week.

The MSCI Asia Pacific Index went down 0.4 percent, after its highest close in Thursday ever since July 2015.

The Topix Index of Japan dropped 0.6 percent.

Australia’s S&P/ASX 200 Index lost 0.2 percent and New Zealand’s S&P/NZX 50 Index went down 0.1 percent.

The Kospi Index of Korea lost 0.3 percent.

The Hang Seng Index of Hong Kong slid0.4 percent from its highest close since August 2015. The Hang Seng China Enterprises Index dropped 0.1 percent while the Shanghai Composite Index went down 0.5 percent.

The Straits Times Index of Singapore went up 0.4 percent as data showed the economy grew at the fastest pace in more than five years in the fourth quarter.

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