US retail sales, which were weaker than expected, caused most Asian stocks to drop Tuesday. In addition, Federal Reserve chairman Ben Bernanke's testimony in Congress stalled investors from doing much activity in the market.
Retail sales in the US dropped from 0.5% in May to 0.4% in June. There were more purchases of clothes, furniture, cars, and trucks. However, Americans cut back on other purchases. This was a sign of mixed economic growth.
As a result, several Asian stocks dropped. South Korea's Kospi fell to 1,866.42 (0.5%). Hong Kong's Hang Seng fell to 21,291.36 (0.1%). China's Shanghai Composite Index fell to 2,045.40 (0.7%). Similarly, the Singaporean, Thai, Taiwanese, and Indian went down as well. Only the Japanese Nikkei increased 0.6% to 14,593.70.
Bernanke's upcoming speech on Wednesday was also another reason investors held back from the market. Investors will be looking for signs of commitment to the central bank's stimulus program from the chairman's speech.
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