World Bank Cuts Growth Forecasts – Asian Stocks Decline

Asian equities dropped after the World Bank cut its global growth forecast and investors mulled the outlook for monetary stimulus. The yen gained, while New Zealand’s currency fell after the central bank said it was overvalued. Crude retreated after rallying in New York.

The MSCI Asia Pacific Index lost 1.2 percent by 9:52 a.m. in Tokyo, the most in six days, as Japan’s Topix Index declined 2.5 percent. Standard & Poor’s 500 Index futures were little changed after the gauge retreated a third day in New York. The yen gained at least 0.4 percent against its 16 major peers, reaching the strongest level in two months versus the dollar. The so-called kiwi weakened 0.3 percent after the Reserve Bank of New Zealand left benchmark interest rates at a record low. Oil fell 0.3 percent as wheat and silver retreated.

The global economy will expand 2.2 percent in 2013, less than a January forecast of 2.4 percent and slower than last year’s 2.3 percent, the World Bank said in a report released in Washington yesterday. With the Federal Open Market Committee meeting next week, data today may show U.S. retail sales rose last month, while jobless claims held steady in the week to June 8, according to Bloomberg surveys of economists.

Bloomberg

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