Asian stocks mixed following World Bank growth downgrade

All Asian stocks but Tokyo fell today (June 11th) after the World Bank cut its global economic growth predictions.

The bank cut its forecast this year to 2.8 per cent from the 3.2 per cent it anticipated in January, citing weaker growth than expected in Russia, the US and China.

During late Asian trade, Hong Kong's Hang Seng dipped 0.35 per cent, China's Shanghai Composite eased down 0.02 per cent and Australia's S&P/ASX 200 closed 0.29 per cent lower.

However, Japan's Nikkei 225 ended up 0.5 per cent, helped by indications that a downturn from a sales tax hike instituted in April might not be as severe as originally expected, AP reports.

The World Bank downgrade dampened enthusiasm among traders who had hoped stronger growth would fuel demand for Asian goods.

Stocks on Asian markets yesterday rose to three-year highs following series of positive news over global growth prospects, including monetary easing by the European Central Bank and positive US employment data.

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