2014.10.0201:47:23UTC+00Asian stocks continue decline ahead of ECB meeting

Asian stocks extended its declines globally as investors await the Thursday meeting of the European Central Bank amid the US selloff and escalating geopolitical situations across the globe.

The MSCI Asia Pacific Index shed 0.6%, 12:06 pm, Tokyo time. It is the fifth consecutive day of loss for the gauge. If it keeps going, it will soon reach the index’s lowest close in five months. All major indices are down. Japan’s Nikkei 225 Index and South Korea’s KOSPI Index declined by 1.79% or 287.77 points to 15,794.48 and 0.77% or 15.38 points to 1,976.16 respectively. Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index fell by 1.28% or 296.23 points to 22,982.98 and less than 0.1% to 2,363.87 respectively. Australia’s Standard & Poor’s/ASX 200 and the CNBC 100 ASIA IDX shed 0.65% or 34.63 points to 5,299.50 and 0.47% or 32.90 points to 7,009.97 respectively.

In Japan, Japan Airlines along with ANA Holding lost 3% and 2% respectively while Honda Motor tanked 4% following reports of a scale back in Japanese production. All of Australia’s ‘Big Four Banks’ retreated with Australia New Zealand Banking and Commonwealth Bank of Australia dropping at least 0.6% each. South Korea’s Hyundai Motor plummeted by 4%.

US stocks plummeted in the trading session with the Federal Reserve getting ready to finish its bond-buying program as the European economic growth slowed and more geopolitical situations escalate. German manufacturing data showed a decline while euro-area factories cut down prices to its lowest since more than a year ago. Italy, meanwhile, pared its growth forecast, dragging equities down as investors turn to Thursday’s European Central Bank Meeting for any stimulus.