The euro held hefty gains in Asia on Friday after the European Central Bank eased aggressively but suggested it was running out of room to cut interest rates, even if other stimulus options remained.
The muddled message sent European bond yields surging and snuffed out a nascent rally in risk sentiment, leaving Asian share markets at a loss on how to react.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off a slight 0.08 percent, while Australia dipped 0.2 percent.
Japan's Nikkei .N225 took a bigger blow from a rise in the yen and slipped 1.5 percent.
US equities finished the day materially unchanged in a volatile post ECB session. The DJIA closed down 0.03%, the S&P 500 edged up 0.02% and the NASDAQ lost 0.26% .
All eyes were on the latest monetary policy machinations of Mario Draghi and his ECB.
** Main interest rate cut from 0.05% to 0.00%
** Excess deposit rate cut from -0.30% to -0.40%
** Overnight lending facility cut from 0.30% to 0.25%
** Bond purchases increased by 20bln euro to 80bln euro per month
- The market initially responded positively before reversing sharply following Draghi's statement suggested there would be no further cuts
- The DAX gave up 2.31%, the CAC 40 fell 1.70% and in the UK the FTSE 100 closed down 1.78%
Reference: Reuters, MKS Group
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