Singapore - QNA
Asian stocks dropped to a five-week low on speculation that the US Federal Reserve is likely to curb bond purchases next month.
Traders are not making big decisions till they get full details of Federal Reserves’ policy meeting held in July on whether the bank would start trimming it monthly bond purchases.
Japan’s Nikkei 225 index fell 0.5 % to 13,684.60. Hong Kong’s Hang Seng dropped 0.3 % to 22,389.06. Australia’s S&P/ASX 200 lost 0.5 % to 5,085. South Korea’s Kospi rose 0.2 % to 1,919.96.
Recent economic data and public statements by Fed policymakers have led to expectations that the Fed might begin winding down its US $85 Billion a month in asset purchases next month. That would decrease the demand for bonds, lowering their prices and raising their yields.