STOCKS sank yesterday, with the regional benchmark index posting its biggest drop in more than a month, as Japan’s economy unexpectedly fell into recession and Hong Kong shares slid as a trading link with Shanghai started.
The MSCI Asia Pacific index slipped 1.3 percent to 139.87 points at 7.04pm in Hong Kong. Japan’s Topix index sank 2.5 percent and Hong Kong’s Hang Seng index decreased 1.2 percent.
Toyota lost 2.1 percent in Tokyo. Hong Kong Exchanges & Clearing slumped 4.5 percent as a quota for mainland investors to buy the city’s stocks through the Shanghai exchange link went largely unfilled. China Construction Bank slid 1.7 percent after the nation’s bad loans jumped the most since 2005.
“This is quite a disappointment,” Ryan Huang, a strategist at IG in Singapore, said. “There’s definitely a case for [Prime Minister Shinzo] Abe to push back the second sales tax increase. We’ll probably get more stimulus out of Japan.” – Bloomberg