Asia Markets Cautious As Tokyo's Winning Run Ends

Asia markets cautious as Tokyo's winning run ends

HONG KONG,(Pakistan Point News - 20th july,2016) - Japanese stocks finally fell Wednesday after six straight days of gains, and most other Asian markets moved cautiously following weak leads from New York and Europe and a cut in the IMF's world growth forecast. The Nikkei in Tokyo had surged more than 10 percent during its rally -- fuelled by hopes for stimulus measures as well as a weaker yen -- and investors decided it was time to cash in.

The index ended down 0.3 percent. While the Dow on Wall Street closed at another record, the broad lead from Europe and New York was tepid after the International Monetary Fund lopped 0.1 percentage point off its outlook for the global economy for both this year and next. The Fund pointed to last month's shock vote for Britain to leave the European Union, saying it had darkened the skies in that country and across the euro area and dented an already fragile recovery. It also downgraded its 2016 growth estimate for the British economy by 0.2 percentage points, putting renewed pressure on sterling, which eased to $1.3095 in Asia and back towards the three-decade lows hit after the June 23 vote.