Asia stocks fall first time in five days as en­ergy shares drop

The Pak Banker - - MARKETS/SPORTS -

Asian stocks dropped, with the re­gional bench­mark in­dex head­ing for its first de­cline in five days, as ma­te­rial and en­ergy shares led losses af­ter oil re­sumed its sell­off amid signs China's econ­omy is de­te­ri­o­rat­ing.

The MSCI Asia Pa­cific In­dex slid 0.3 per­cent to 122.29 as of 9:01 a.m. in Tokyo. The gauge capped its long­est win­ning streak of the year, gain­ing 4.1 per­cent in four days, as op­ti­mism grew that cen­tral banks around the world will sup­port fi­nan­cial mar­kets. Crude tum­bled af­ter China's of­fi­cial fac­tory gauge sig­naled a record sixth straight month of de­te­ri­o­ra­tion.

"We're in for a pe­riod of con­tin­u­ing cau­tion," An­gus Gluskie, a man­ag­ing di­rec­tor who over­sees $550 mil­lion at White Funds Man­age­ment in Syd­ney, said by phone. "It's a pe­riod of un­cer­tainty. China re­mains the big­gest con­cern for in­vestors. If the Chi­nese sit­u­a­tion de­vel­ops more ad­versely, it could have greater ram­i­fi­ca­tions."

Fed­eral Re­serve Vice Chair­man Stan­ley Fis­cher said that the im­pact of re­cent mar­ket tur­bu­lence on U.S. growth could fac­tor into de­ci­sion-mak­ing, help­ing U.S. stocks shrug off the oil slump to close lit­tle changed. Fu­tures on the Stan­dard & Poor's 500 In­dex fell 0.4 per­cent on Tues­day.

Ja­pan's Topix in­dex lost 0.8 per­cent, af­ter ral­ly­ing more than 5 per­cent over the pre­vi­ous two days on the Bank of Ja­pan's un­ex­pected stim­u­lus boost. South Korea's Kospi in­dex slid 0.6 per­cent.

New Zealand's bench­mark gauge added 0.2 per­cent. Aus­tralia's S&P/ASX 200 In­dex re­treated 0.6 per­cent be­fore the na­tion's cen­tral bank re­views its mon­e­tary pol­icy.

Fu­tures on the FTSE China A50 In­dex added 0.2 per­cent in most re­cent trad­ing, while those for Hong Kong's Hang Seng In­dex slipped 0.2 per­cent.

The Shang­hai Com­pos­ite In­dex slumped 1.8 per­cent af­ter of­fi­cial fac­tory gauge sig­naled a record sixth straight month of de­te­ri­o­ra­tion, rais­ing the stakes for pol­icy mak­ers strug­gling to prop up the econ­omy amid a se­cond bear mar­ket in stocks since June and a cur­rency at a five-year low.

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