Thursday, 2 August 2012

Most Asian Stocks Drop, Oil Retreats Before ECB Meet; Corn Rises

Aug. 2 (Bloomberg) --
"Most Asian stocks fell and oil retreated as investors awaited a policy announcement by the European Central Bank after the Federal Reserve pledged more support for the U.S. economy if necessary. Corn rallied.


About three stocks retreated for every two that rose on the MSCI Asia Pacific Index, which lost 0.2 percent as of 1:03 p.m. in Tokyo. Standard & Poor’s 500 Index futures rose 0.2 percent after the gauge dropped 0.3 percent yesterday. The euro traded for $1.2247, up 0.2 percent, while South Korea’s won weakened from a four-month high. Oil slipped 0.2 percent after its biggest gain in two weeks yesterday amid shrinking U.S. stockpiles. Corn futures gained for the first time in three days.

The ECB will announce a policy decision today following President Mario Draghi’s pledge last week to do “whatever it takes” to keep the euro together. The Fed signaled its readiness to support the economy even as it refrained from adding to bond purchases yesterday. The Asia-Pacific gauge fell for a second day after recording it’s biggest four-day gain this year through July 31.

“Investors are being cautious, taking into account the possibility of their expectations being betrayed,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd., which has 33 trillion yen ($420 billion) in assets. “Asian markets are hoping but not completely believing that the ECB will do more.”

To contact the reporters on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net ; Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net "



Steven



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