Most Asian stocks fall as ECB assesses Brexit impact to decide on stimulus

Most Asian stock market indices were trading lower on Friday (22 July). The Shanghai Composite Index was down 0.71% at 3,017.31 as of 6.30am GMT, following the European Central Bank (ECB) stating that it will examine the Brexit impact before taking a decision on providing more stimulus.

The ECB said on Thursday (21 July) that it will wait for at least another six weeks before deciding on the stimulus. Mario Draghi, the ECB president, said his staff would "continue to monitor economic and financial market developments very closely". He added that the bank would be able to better assess the status of the eurozone economy and the Brexit impact on growth and inflation in the coming months. While he did comment on the actions or stimulus the bank would introduce, he said, if warranted, the ECB would use all "instruments available within its mandate", according to the Guardian.

Khiem Do, head of Asian Multi Asset at Baring Asset Management, said the ECB's inaction had disappointed markets. He added that the falls in the Asian stock markets will be limited as they continue to remain attractive to investors in the West. "Investors realise that the Brexit event has passed and global investors are looking for alternatives to the UK and Europe," Do was quoted as saying by MarketWatch.

Indices in the rest of Asia traded as follows on 22 July at 6.44am GMT:

Overnight (21 July), the Dow Jones Industrial Average closed at 18,517.23, down 0.42%, while the FTSE 100 closed at 6,699.89, down 0.43%.

Among commodities, oil prices declined amid oversupply fears triggered by an increase in Iraqi crude exports and record US inventory of gasoline and other oil products. While WTI crude oil was trading lower by 0.45% at $44.55 (£33.65, €40.41) a barrel, Brent crude was trading 0.13% lower at $46.14 a barrel as of 6.54am GMT.