Asian Shares Fall On Negative ECB Outlook, Weak ISM Report

Asian markets were down Friday as more negative outlook by European Central Bank president Mario Draghi and weaker-than-expected US Institute for Supply Management (ISM) non-manufacturing report weighed on investor sentiments.

Draghi gave only little hope that the ECB would deliver assistance to the Eurozone affected by the debt crisis. While investors were having hopes in the ECB to offer further assistance to the ailing economy, Draghi stressed on the need to have long-term deep economic reforms.

Meanwhile, according to figures from ISM, the US non-manufacturing sector expanded at a slower pace than expected in April. ISM's non-manufacturing purchasing managers' index fell to 53.5 in April from 56.0 in March.

While Chinese Shanghai gained 0.49 percent to close at 2,452.01, Hong Kong's Hang Seng fell 0.77 percent or 163.53 points to 21,086.00. South Korean KOSPI also declined 0.30 percent or 5.96 points to close at 1,989.15.

The Hong Kong stocks linked to Europe fell as Draghi made the statement that the ECB would not go for additional stimulus to support the European economy.

Shares of Sun Hung Kai Properties and SunEvision Holdings Ltd were suspended from trading in Hong Kong as the Independent Commission Against Corruption widened the probe on the alleged corruption charges on the Kwok brothers who run the two companies.

Stocks in India plunged with Sensex slumping 1.78 percent to 16846.41 at 3:05 pm IST. Shares of the State Bank of India, the country's largest lender, fell by 3.94 percent. The Indian shares appeared to keep track of diminishing hope on global recovery with the decision by the central bank in Australia to cut its economic forecast and the less than expected figures from ISM services PMI.