Asian stocks declined, with the regional benchmark index entering a correction, as shares of Japanese exporters retreated after the yen strengthened.
Toyota Motor Corp., the world’s biggest carmaker, slid 2.5 percent and was the biggest drag on drag on the Asia-Pacific gauge. Japan Display Inc. (6740), a maker of mobile-device screens for Apple Inc., sank 8.1 percent after CLSA Asia-Pacific Markets cut its rating to underperform. HCL Technologies Ltd. tumbled 9.1 percent after the Indian computer software maker posted sales that missed analyst estimates. Cnooc Ltd., China’s biggest offshore energy explorer, added 3.8 percent after crude prices rebounded.
The MSCI Asia Pacific Index (MXAP) declined 0.6 percent to 133.96 as of 8:08 p.m. in Hong Kong, erasing earlier gains of as much as 0.2 percent. The gauge closed more than 10 percent down from its July 29 high, which would meet the common definition of correction. The measure is also poised for its sixth straight weekly decline as faltering recoveries in China and Europe spark concern global economic growth will slow and the Fed considers when to raise interest rates.
“After the early morning buying spree traders have sat on their hands,” Chris Weston, chief markets strategist in Melbourne at IG Ltd., wrote in an e-mail to clients. “The macro issues haven’t gone away after all the technical damage to these markets. It’s hard to be outright bullish.”
Futures on the Standard & Poor’s 500 Index jumped 1.3 percent today. The gauge closed little changed yesterday after erasing an intraday drop of as much as 1.5 percent.
St. Louis Fed Bank President James Bullard said the central bank should consider delaying the end of its bond buying to halt the decline in inflation expectations. Reports yesterday showed production at U.S. factories rebounded, claims for jobless benefits fell to a 14-year low and households held the most optimistic views in two years, signs the world’s largest economy is overcoming a global slowdown.
“I don’t think the fundamental picture has changed significantly,” said Steven Milch, Sydney-based chief economist at Suncorp Group Ltd. “U.S. data overnight was pretty good. The Fed needs to balance what is clearly a strong economy against some of this financial market volatility.”
Japan’s Topix index slipped 1.5 percent to its lowest close since May 22. South Korea’s Kospi index dropped 1 percent. Taiwan’s Taiex declined 1.4 percent. China’s Shanghai Composite Index fell 0.7 percent. New Zealand’s NZX 50 Index and Australia’s S&P/ASX 200 (AS51) Index each added 0.3 percent.
Hong Kong’s Hang Seng Index climbed 0.5 percent. Police cleared protest barricades and opened roads in the Mong Kok district hours after student leaders agreed to talks with the government aimed at ending three weeks of pro-democracy demonstrations. Source: Bloomberg