Investing.com - Asian stock markets opened falling Thursday as despite fresh loans made available to European financial institutions by their central bank, the continent still faces the tough task of getting its overall economic house in order.
During morning Asian trading, Hong Kong's Hang Seng Index was down 0.53%, Australia's S&P/ASX200 was down 1.01%, while Japan’s Nikkei 225 Index was down 0.45%.
The European Central Bank on Wednesday made EUR489.19 billion in loans available to 523 eurozone banks with the aim of facilitating lending and easing the credit crunch there.
Demand was hot, and yet banks apparently didn't invest too much of that money into government debt.
Yields on Italian 10-year government bond yields climbed 12 basis points to 6.69 percent, while the rate on comparable Spanish debt surged 17 basis points to 5.2 percent, according to Bloomberg data.
Furthermore, the loans didn't loosen up interbank lending, at least as of now.
The European Central Bank refuses to step in and buy government debt directly from banks via quantitative easing on the grounds that doing so would pump up inflationary pressures.
Initial optimism from the bank loans soon evaporated not into fear-induced selling but rather, into detached apathy among investors, which carried over into Asian trading.
"The ECB doesn’t seem to have stepped up to the plate for bond buying, which I think is negative, but at least they are acting as a lender of last resort for banks," said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., according to Bloomberg.
"As we are heading closer to a holiday period, volumes decline."
Hong Kong's leading losers included COSCO Pacific, down 2.33%, Li & Fung, down 2.13%, and China Resources, down 1.71%.
In Australia, the top decliners included Ardent Leisure Group, down 7.59%, Beadell Resources, down 6.57%, and Goodman Fielder, down 6.38%.
European stock futures indicated losses ahead.
France's CAC 40 futures pointed to a loss of 0.14%, while Germany ’s DAX 30 futures signaled a decline of 0.11%. Meanwhile, in the U.K., the FTSE 100 futures indicated a 0.13% drop.
Dow Jones Industrial Average futures were down 0.10% while the broader S&P 500 futures were off 0.09%.
Later on Thursday, the Bank of Japan will releases its Monthly Report, which contains data that policymakers use when setting benchmark interest rates.
The U.K. will release its latest gross domestic product growth and business investment figures as well as the country's most recent current account balance numbers.
In the U.S., weekly initial jobless claims will come out along with overall economic growth figures as well.
The Michigan Consumer Sentiment Index will shed some light on the mood in the world's largest economy as well.
During morning Asian trading, Hong Kong's Hang Seng Index was down 0.53%, Australia's S&P/ASX200 was down 1.01%, while Japan’s Nikkei 225 Index was down 0.45%.
The European Central Bank on Wednesday made EUR489.19 billion in loans available to 523 eurozone banks with the aim of facilitating lending and easing the credit crunch there.
Demand was hot, and yet banks apparently didn't invest too much of that money into government debt.
Yields on Italian 10-year government bond yields climbed 12 basis points to 6.69 percent, while the rate on comparable Spanish debt surged 17 basis points to 5.2 percent, according to Bloomberg data.
Furthermore, the loans didn't loosen up interbank lending, at least as of now.
The European Central Bank refuses to step in and buy government debt directly from banks via quantitative easing on the grounds that doing so would pump up inflationary pressures.
Initial optimism from the bank loans soon evaporated not into fear-induced selling but rather, into detached apathy among investors, which carried over into Asian trading.
"The ECB doesn’t seem to have stepped up to the plate for bond buying, which I think is negative, but at least they are acting as a lender of last resort for banks," said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., according to Bloomberg.
"As we are heading closer to a holiday period, volumes decline."
Hong Kong's leading losers included COSCO Pacific, down 2.33%, Li & Fung, down 2.13%, and China Resources, down 1.71%.
In Australia, the top decliners included Ardent Leisure Group, down 7.59%, Beadell Resources, down 6.57%, and Goodman Fielder, down 6.38%.
European stock futures indicated losses ahead.
France's CAC 40 futures pointed to a loss of 0.14%, while Germany ’s DAX 30 futures signaled a decline of 0.11%. Meanwhile, in the U.K., the FTSE 100 futures indicated a 0.13% drop.
Dow Jones Industrial Average futures were down 0.10% while the broader S&P 500 futures were off 0.09%.
Later on Thursday, the Bank of Japan will releases its Monthly Report, which contains data that policymakers use when setting benchmark interest rates.
The U.K. will release its latest gross domestic product growth and business investment figures as well as the country's most recent current account balance numbers.
In the U.S., weekly initial jobless claims will come out along with overall economic growth figures as well.
The Michigan Consumer Sentiment Index will shed some light on the mood in the world's largest economy as well.