Asian stocks pare losses

<p>Asian stocks continued their downward trend today, although not as large as offshore losses. The MSCI Asia Pacific index was 0.6% lower in early afternoon […]</p>

Asian stocks continued their downward trend today, although not as large as offshore losses. The MSCI Asia Pacific index was 0.6% lower in early afternoon Tokyo trading.

The Chinese Yuan continues to weaken, dropping to its lowest level in two weeks after the PBOC set its limit slightly lower at 6.339 against the US dollar.

The Australian dollar continues to test parity having fallen below several times during the session. The Japanese Yen also continues to weaken but has held film in early afternoon trading, with the USD/JPY last at 77.92.

Gold also declined, last trading at around US$1639/oz while silver finds some support at US$30/oz, last trading slightly above. Traders are caught between a recovering U.S. market and Europe falling over, with profit taking in the gold price a quick option.

In regional corporate news, embattled Olympus Corp restated past earnings in a desperate effort to avoid being delisted from the Tokyo Stock Exchange. The group says assets exceed liabilities at the period ending March 2011. Earnings for 2011 were revised to 3.87bn yen from a 7.38bn profit previously.

In Australian corporate news, engineering group Downer EDI announced the sale of its CAG consulting group for $147m to China Architecture Design and Research. Downer’s shares, which have been hard hit this year due to contracting issues, recovered to close 4.6% higher.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.