Most Asian markets decline amid disappointing Japan stimulus plan

While most Asian stock market indices traded lower on 3 August (Wednesday), the Shanghai Composite was up 0.22% at 2,977.69 as of 5.16am GMT, amid disappointment over the stimulus plan announced by the Japanese government.

The government has approved fiscal measures worth ¥13.5tn (£100.23bn; €119.15bn; $133.56bn). Of this, ¥7.5tn has been approved for spending by the national and local governments. While this is part of Prime Minister Shinzo Abe's ¥28tn fiscal stimulus package announced last week, it has disappointed many investors who were expecting more.

"Japan's keenly awaited fiscal stimulus proved to be a damp squib, disappointing yen bears who were hopeful for more forceful government spending to revitalize Abenomics," Wei Liang Chang, a strategist at Mizuho Bank, was quoted as saying by CNBC.

Going forward, investors are said to be awaiting the decision that the Bank of England would take on cutting interest rates, at its policy meeting scheduled on Thursday (4 August). "With Japan and the UK set to ease fiscal policy, it will be important to watch whether we are at the beginning of a global policy re-pivot away from monetary easing," ANZ analysts were quoted as saying by Reuters.

Indices in the rest of Asia traded as follows on 3 August at 5.27am GMT:

Overnight (2 August), the Dow Jones Industrial Average closed at 18,313.77, down 0.49%, while the FTSE 100 closed at 6,645.40, down 0.73%.

Among commodities, oil prices which recently touched three-month lows, were in the green. While WTI crude oil was trading higher by 0.40% at $39.67 (£29.79; €35.38) a barrel, Brent crude was trading 0.29% higher at $41.92 a barrel as of 5.34am GMT.