Asian stocks drop ahead of Easter holidays as worries over Europe’s debt crisis reignite  

As volumes increased with the return of China, Hong Kong and Taiwan from holidays, the MSCI Asia Pacific Index is seen little changed although the index fell earlier by 1.2% on worries over Europe’s debt crisis.

Worries over Europe’s debt crisis were renewed on Wednesday after Spain witnessed a disappointing bond auction, which saw yields rising, as demand was not as strong as expected, while France will sell long term bonds later today.

Meanwhile the fading expectations for more stimulus from the Feds continues to add to the downside pressures on markets, leaving investors looking for more clues over global growth outlook, increasing their caution and heading for safe haven.

Moreover, markets are preparing for the upcoming long weekend as the US and Europe will close earlier this week for Easter, which could determine investors to lock on to their profit which is adding to the downside pressures on markets.

Data today may show a fall in the US jobless claims, while Germany may witness a drop in the industrial production. UK will release its rate decision today, while the US is set to release March’s non-farm payrolls on Friday.

Trading was still thinner than normal ahead of Easter holidays as markets in India and the Philippine were closed on Thursday for holiday, while markets in Hong Kong, India and Australia will be shut on Friday.