2014.11.1903:12:08UTC+00Asian stocks drop after Japanese risk events ahead of FOMC minutes

Asian stocks mostly drop after key Japanese risk events as investors await the release of the US Federal Reserve’s meeting minutes. Prime Minister Shinzo Abe announced the tax delay and a call for snap elections as the Bank of Japan announced a steady monetary policy.

Japan’s Nikkei 225 Index and South Korea’s KOSPI Index declined by 0.32% or 55.31 points to 17,288.75 and 0.01% or 0.14 points to 1,966.87 respectively. Hong Kong’s Hang Seng Index  and China’s Shanghai Composite Index shed 0.46% or 109.83 points to 23,419.34 and 0.33% or 8.15 points to 2,448.21 respectively. Australia’s S&P /ASX 200 lost 0.57% or 30.89 points to 5,368.80.

Japanese stocks rallied earlier following Prime Minister Shinzo Abe’s announcement to delay the tax hike, call for a snap election, and prepare for a stimulus package. In the press conference by Prime Minister Shinzo Abe yesterday, he announced that the tax hike will be delayed by 18 months. He also called for a snap election that will most probably be held on December 14 according to people that have an idea of the strategy of the ruling party. parliament will be dissolved by November 21. Meanwhile, the Bank of Japan announced that it will be maintaining its monetary policy steady.

Australia’s BC Iron and Fortescue Metals sank over 12% and 7% respectively. In Seoul, the won dropped from a 14-month low of 1,106. China’s SAIC Motor and Kweichow Moutai fell 4% and 1.5% respectively. In Japan, Takata was the biggest laggard, plummeting by 7.4%.