Asian stocks were headed for harm on Friday after the European Central Bank slashed its growth forecasts and launched an emergency round of policy stimulus, leaving investors fearing the worst for the global economy.
ECB President Mario Draghi said the economy was in “a period of continued weakness and pervasive uncertainty” as he pushed out a planned rate hike and instead offered banks a new round of cheap loans.
The reversal came in the same week that Canada’s central bank took a sudden dovish turn and dismal data from Australia to the UK instilled a sense of foreboding in markets.
In Asia, Nikkei futures were pointing to an opening loss of around 1.6 percent, while the Australian market was off 0.4 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent in early trade.
Source : Reuters