Asian stocks slip as investors monitor Trump tax plan

Kelvin Chan, The Associated Press</span>
Published Thursday, April 27, 2017 1:14AM EDT

HONG KONG - Asian shares slipped Wednesday as investors digested the scant details of President Donald Trump's U.S. tax overhaul, and economic and corporate reports. Investors also were awaiting a policy statement from the Bank of Japan that's expected to provide fresh insights into the state of Asia's second-biggest economy.

KEEPING SCORE: Japan's Benchmark Nikkei 225 index lost 0.2 per cent to 19,243.15 while South Korea's Kospi dipped 0.2 per cent to 2,203.42. Hong Kong's Hang Seng shed 0.2 per cent to 24,541.24 and the Shanghai Composite index in mainland China fell 1.0 per cent to 3,108.75. Australia's S&P/ASX 200 edged up a fraction to 5,916.20. Benchmarks in Taiwan and Southeast Asia slipped.

TRUMP ON TAX: The White House unveiled the broad outlines of Trump's tax plan while leaving out many of the details. Officials said they hoped to slash corporate taxes to 15 per cent from 35 per cent, but specifics are still to be negotiated. Stocks have been lifted by investor anticipation of big tax cuts as well as Trump's vow to cut red tape for businesses. But based on the few specifics spelled out so far, most experts suggested the plan would add little to growth while swelling the budget deficit and potentially handing large windfalls to wealthier taxpayers.

QUOTEWORTHY: "As expected, the Trump administration rolled out the tax reform roadshow on Wednesday," said Stephen Innes, senior trader at OANDA. "Given the markets lofty expectations, traders are viewing it as little more than a road map, rather than the much ballyhooed 'big announcement,' because the statement did not provide any comprehensive details."

SOUTH KOREAN GROWTH: A recovery in exports helped the South Korean economy expanded at the fastest pace in a year, the country's central bank said. Asia's No. 4 economy beat forecasts by growing 2.7 per cent in the first quarter, defying a backlash from Chinese consumers over deployment of a U.S. missile defence system.

SAMSUNG IN THE MONEY: The South Korean electronics giant posted its fattest quarterly profits in more than three years, boosted by stellar performance at its semiconductor division. The first-quarter earnings, which come after a tough period for the company, leaped 46 per cent over the year-ago period.

TAKATA SHARES SUSPENDED: Shares in troubled airbag and seatbelt maker Takata Corp. were suspended from trading on Thursday after the financial newspaper Nikkei reported the company was planning to file for bankruptcy protection. Company officials said the company had made no announcement but planned to issue a statement. The Nikkei reported that Key Safety Systems, a subsidiary of China's Ningbo Joyson Electronic Corp., would establish a new company to buy Takata's operations.

WALL STREET: The Standard & Poor's 500 index slipped less than 0.1 per cent to 2,387.45 after briefly climbing above its record closing level earlier in the day. The Dow Jones industrial average lost 0.1 per cent to 20,975.09 and the Nasdaq composite slipped less than 0.1 per cent to 6,025.23. The Russell 2000 index of small-caps rose 0.6 per cent to 1,419.43.

ENERGY: Benchmark U.S. crude oil fell 21 cents to $49.41 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 6 cents to settle at $49.62 a barrel on Wednesday. Brent crude, which is used to price international oils, fell 15 cents to $52.26.

CURRENCIES: The euro rose to $1.0913 from $1.0905 late Wednesday, while the dollar rose to 111.22 yen from 111.07 yen.

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