Asia stocks dip ahead of key central bank decisions; Nikkei down 0.17%

Investing.com - Asian stocks retreated on Thursday as investors jumped to the sidelines to await monetary policy decisions due out later from the European Central Bank and the Bank of England.

Investors shrugged off talk the European Central Bank will cut interest rates, which would otherwise send stocks climbing, and sold on sentiment that a cooling European economy will crimp Asian exports to the continent.

During Asian trading on Thursday, Hong Kong's Hang Seng Index was down 0.36%, Australia's S&P/ASX200 was down 0.25%, while Japan’s Nikkei 225 Index was down 0.17%.

Later Thursday, the European Central Bank is expected to announce plans to cut eurozone interest rates to a record-low 0.75% from 1.00% to spur economic activity.

The Bank of England, meanwhile, will also hold a monetary policy meeting during the day and is expected to roll out fresh stimulus measures to boost the U.K. economy, though interest rates should hold steady at 0.50%.

U.S. markets were closed on holiday Wednesday, yet Asian investors sold stocks ahead of Friday's jobs report, a widely-followed indicator in the U.S.

Fears persist the June number may disappoint.

While weak jobs numbers fuel talk of Federal Reserve stimulus at home, which would weaken the dollar and send global stocks climbing, poor unemployment figures also sparked selling in Asian stock markets amid sentiment the world's largest economy is battling stronger headwinds.

Sluggish data out of the eurozone fueled selling as well.

The German Services Purchasing Managers' Index fell to 49.9 in June, below expectations for 50.3, according to London-based Markit Economics.

Still, the euro and other risk-on asset classes, including stocks, some positive indicators.
Markit’s eurozone services index came to 47.1 in June, better than market forecasts for 46.8.

Eurozone retail sales 0.6% in May, beating expectations for a 0.3% gain.

April sales, however, were revised down to a 1.4% decline from a previously reported dip of

In Hong Kong, top decliners included China Shenhua, down 2.14, % China Merchant Holdings, down 2.14%, as well, and Bank of China, down 1.36%.

In Australia, top decliners included Aquarius Platinum, down 8.86%, Beach Energy, down 5.88%, and FKP Property Group, down 4.88%.

European stock futures indicated a lower opening.

France's CAC 40 futures pointed to a loss of 0.22%, while Germany's DAX 30 futures signaled a loss of 0.27%. Meanwhile, in the U.K., the FTSE 100 futures indicated a loss of 0.26%.

Dow Jones Industrial Average futures were down 0.33% while the S&P 500 futures were up 0.41%.

Later Thursday, on top of the ECB interest rate announcement, in the euro zone, central bank head Mario Draghi will give a press conference to discuss policy.

The U.S., meanwhile, will publish a report by payroll processing firm ADP on non-farm employment changes, followed by government data on weekly unemployment claims.

The U.S. will also release an ISM report on service sector growth, as well as government data on crude oil stockpiles.