20.11.201401:15:26UTC+00Asian stocks fall on Fed minutes, Japan stocks rise on weak yen

Asian stocks retreated again today following the release of the Federal Reserve minutes displayed policymakers’ concern for the slowing prices in the economy. Japanese shares mostly increased after the yen weakened further to its lowest in seven years versus the dollar.

The MSCI Asia Pacific Index shed 0.1% to 139.54, 9:04 am, Tokyo time. In the previous trading day, the index lost 0.7%. The Topix Index climbed by 0.2% to 1,398.74, 12:47 pm, Tokyo time. The trend showed that for every nine shares climbing, seven dropped. The Nikkei 225 Stock Average added 0.1% to 17,311.77 as the nation’s currency dropped further by 0.3% to match the dollar at 118.32 yen per dollar. It is the currency’s weakest in seven years all the way back to August of 2007.

Hong Kong’s Hang Seng Index rose by 0.08% or 18.82 points to 23,392.13 while China’s Shanghai Composite Index inched up by than 0.04% or 1.03 points to 2,452.01. Australia’s S&P/ASX 200 and South Korea’s KOSPI Index sank by 0.98% or 52.64 points to 5,316.20 and 0.50% or 9.91 points to 1,956.96 respectively.

In Japan, Toray Industries Inc. led the textile industry, surging by 6.6%. Toyota Motor Corp. rose by 0.8% while Mitsubishi Estate Co. shed 2.1%. Developers led losses in the gauge. Australia’s Fortescue Metals lost 3.5% as Rio Tinto along with BHP Billiton tumble by 3% and 2.7% respectively. South Korea’s Hyundai Motor, Kia Motors, and Samsung Electronics all plummeted, losing by 2.3%, 0.9%, and 0.7% respectively.

Despite the stronger main labor-market indicators, inflation has apparently stagnated and policymakers has pointed last month that there will be a weaker economic outlook, increased downside risk for Japan, China, and Europe, and a stronger dollar according to the minutes.

Inflation is still having a hard time getting off despite the concern for economic recoveries from Japan, Europe, and the US prompting central banks worldwide to prolong stimulus measures as a justification. Fed Chair Janet Yellen appears to be contradicting herself in today’s comments as her previous statement implies that the risks had ebbed of price increases holding below the goals of policy makers.