Asian shares slip as Wall St records streak ends

HONG KONG: Markets sank in Asian trade Thursday as Wall Street´s record-breaking streak came to an end, while Tokyo was hit by a stronger yen as investors look ahead to a Bank of Japan policy meeting.

Tokyo tumbled 1.07 percent with exporters hurt by the pick-up in the yen. Hong Kong lost 0.65 percent, Sydney slipped 0.50 percent, Shanghai shed 0.20 percent and Seoul was off 0.25 percent.

Investors stepped back after global markets enjoyed a rally at the start of the week in response to upbeat data from the United States, China and Japan.

While there was a certain amount of profit-taking, analysts suggested some of the losses could be attributed to the World Bank´s decision to trim its 2014 global growth forecast to 2.8 percent from a January estimate of 3.2 percent.

Regional dealers were given a negative lead from New York, where all three main indexes ended lower.

The Dow snapped a four-day streak of all-time highs, closing down 0.60 percent to 16,843.88.The S&P 500 fell 0.35 percent, and the Nasdaq eased 0.14 percent.

Jack Ablin, chief investment officer at BMO Private Bank, said the World Bank report "sent a sorry signal to investors".

He also cited the surprise defeat of House Republican Majority Leader Eric Cantor in a Virginia primary battle to a Tea Party-backed candidate. Cantor "was one of the biggest friends of Wall Street and the election of somebody openly antagonistic to Wall Street" sparked worries, Ablin said.

Japan´s Nikkei led Thursday´s retreat in Asia as the yen held on to its New York gains against the dollar.

In morning exchanges the greenback was worth 102.04 yen, against 102.03 yen late in New York afternoon, but well down from 102.27 yen in Tokyo earlier Wednesday.

The euro bought $1.3541 and 138.17 yen compared with $1.3532 and 138.06 yen.

SMBC Nikko Securities general manager of equities Hiroichi Nishi said the Nikkei "continues to look top-heavy at 15,000, and will consolidate, pushed down by the dollar´s weakness".

On oil markets, US benchmark West Texas Intermediate for July delivery rose ten cents to $104.50, while Brent crude for July gained 18 cents to $110.13 in early Asian trading.

Gold fetched $1,260.68 an ounce at 0200 GMT compared with $1,262.40 late Wednesday. (AFP)