JP Morgan admission of losses dampens Asian markets

Asian stocks were mostly lower today following JP Morgan’s after hours shock admission over trading losses.

The MSCI Asia Pacific index was 0.7% lower in early afternoon Tokyo trading. The Australian market was down slightly with about an hour left to trading.

The Australian dollar continues to trade slightly above parity, last at 1.0066 against the US dollar. The Euro was flat at 1.2924 while the dollar yen traded at 79.84.

Copper looks solid given the current market sentiment, last at US$3.67/lb while gold continues to languish, last at US$1586/oz.

In regional economic news, Chinese inflation came in below the government’s target for a third straight month but was broadly in line with market expectations. CPI firmed 3.4% after a 3.6 percent gain in March, the National Bureau of Statistics said today.

China’s one-year interest-rate swap was set for the biggest weekly decline in five months, falling 17 basis points this week to 3.19% in early morning Shanghai trading.

In regional corporate news, Toyota said it reported the most cars and trucks globally in the first three months of this year, thanks to lost production from natural disasters last year. Sales of Toyota, Lexus, Scion, Hino and Daihatsu models grew 18% to 2.49 million in the quarter, the company said in a U.S. regulatory filing.

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