Asian stocks mixed after European Central Bank stays pat

The materials group, which includes precious and base metals miners and fertilizer companies, lost 2.2 per cent.

Energy stocks were well supported after crude oil prices surged in response to a bigger than expected drawdown in U.S. oil inventories in the last week.

Stocks that had the most to lose from higher rates suffered the most in the sell-off Friday.

The Dow dipped 46.23 points or 0.3 percent to 18,479.91, the Nasdaq fell 24.44 points or 0.5 percent to 5,259.48 and the S&P 500 edge down 4.86 points or 0.2 percent to 2,181.30. Eastern time. The Standard & Poor’s 500 index slid 42 points, or 2 percent, to 2,138.

One of the most influential movers on the index was Crescent Point Energy Corp., which fell 8.2 per cent to $18.59 after announcing a plan to raise $650-million by issuing more shares and a $600-million hike in its capital spending plans. The tech-heavy index set all-time highs on Tuesday and Wednesday. Then investors got wind of the remarks by Federal Bank of Boston president Eric Rosengren, who said a case could be made for the central bank to raise its key interest rate sooner rather than later.

ANALYST’S TAKE: “Investors in Asia will focus on two developments from the overnight session – European Central Bank policy decision and the massive drawdown in U.S. crude stockpiles”, says Bernard Aw, market strategist at IG in Singapore. Transocean shed 57 cents, or 5.4 percent, to $9.90, while Marathon Oil slid 98 cents, or 5.9 percent, to $15.76.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.4 per cent, its biggest fall in over a month, after touching a 13-month high on Thursday. Some traders said a nuclear test by North Korea had also hit sentiment.

USA stocks ended lower on Thursday after the European Central Bank failed to announce an extension of its program of asset purchases beyond March 2017, disappointing some who had expected the central bank to extent its program of asset purchases. The S&P 500 declined 1.5%, on track for its biggest drop since it fell 1.8% on June 27, the second day of a selloff that followed the U.K.’s vote to leave the European Union.

The dollar rose as investors speculated that a September rate hike had become more likely, and German 10-year bond yields rose above zero for the first time since June as investors assessed the difficulties that central banks face. Chesapeake Energy rose 81 cents, or 12 percent, to $7.63, the biggest gainer in the S&P 500 index.

ENERGY: Oil prices closed lower after rallying a day earlier. Germany’s DAX was down 0.6 percent, while France’s CAC-40 was down 0.3 percent.

Still, in the absence of any major new economic data, the stock indexes continued a recent pattern of mostly sluggish trading.

Europe’s FTSEuroFirst 300 index of leading shares was down 1.1 per cent, dragging it down 1.5 per cent on the week. WTI climbed above $47 after EIA report showed US crude inventories tumbled by 14.5m barrels last week, the largest decline since January 1999.

The Hang Seng gained 0.8% despite wider losses in the region, after a Chinese regulator said it would allow domestic issuers to invest in Hong Kong-listed stocks through a trading link with Shanghai. Brent crude, used to price worldwide oils, slid 1.98 dollars, or 4%, to close at 48.01 dollars a barrel. Enterprise was down 19 cents, or less than 1 percent, at $27.06. Natural gas slipped a penny to $2.80 per 1,000 cubic feet.

A gauge of global equity markets fell modestly and the euro strengthened on Thursday after the European Central Bank fell short of market hopes for a dovish tone regarding its bond-buying programme. That means the 10-year yield was 85 basis points higher than the two-year yield, a move driven by the jump in longer-dated borrowing costs. The euro climbed to $1.1251 from $1.1245.

CURRENCIES: The dollar edged down to 101.58 yen from Wednesday’s 101.71 yen.