Tags: Asia | stocks | China | economy

Asian Stocks Fall as China Growth Tempers Stimulus Expectations

Tuesday, 21 October 2014 10:54 AM

Asian stocks fell after the regional benchmark yesterday rose the most in two years as China economic data tempered expectations for broader stimulus.

Air-bag maker Takata Corp. tumbled a record 23 percent in Tokyo after Toyota Motor Corp. advised passengers to keep out of front seats amid a U.S. probe into malfunctions in the safety devices. China Mobile Ltd. dropped 1.8 percent after profit slowed for a fifth quarter. LG Chem Ltd. slumped 14 percent in Seoul after earnings were weaker than expected.

The MSCI Asia Pacific Index slid 0.5 percent to 136.02 as of 4:04 p.m. in Hong Kong after soaring 2.2 percent yesterday, the most since September 2012. Prices for the index were delayed this morning by a technical issue, according to MSCI Inc.

“Volatility remains high in the market as the rebound yesterday didn’t calm concern about fundamentals,” said Hitoshi Asaoka, a Tokyo-based senior strategist at Mizuho Trust & Banking Co. “China’s growth figures were largely in line with expectations and won’t spur much speculation for further stimulus measures.”

China’s gross domestic product rose 7.3 percent in the July-September period from a year earlier, the statistics bureau said today in Beijing. While that exceeded the 7.2 percent median estimate in a Bloomberg News survey of analysts, it was also the slowest expansion since the first quarter of 2009. Industrial production rose 8.5 percent in September compared with projections for an 8.4 percent gain.

Slowing Growth

China’s leaders have relaxed home-purchase controls and the central bank has pumped liquidity to lenders as they seek to limit a property-induced slowdown. The government has eschewed across-the-board interest rate cuts and signaled it will tolerate a weaker expansion, leaving the economy headed for the slowest full-year growth since 1990.

The Hang Seng Index rose 0.1 percent and the Hang Seng China Enterprises Index of mainland stocks traded in the city slid 0.2 percent. The Shanghai Composite Index fell 0.7 percent.

Japan’s Topix index slid 1.6 percent after jumping 4 percent yesterday, the most since June 2013, after a report the nation’s $1.2 trillion pension fund will boost domestic stock holdings.

South Korea’s Kospi index lost 0.8 percent. Australia’s S&P/ASX 200 Index added 0.1 percent, while New Zealand’s NZX 50 Index advanced 0.7 percent.

Standard & Poor’s 500 Index futures lost 0.1 percent. The underlying gauge rose 0.9 percent and completed a three-day rebound from last week’s selloff as optimism over corporate earnings spurred a rebound from last week’s selloff. Apple Inc., which rose 2.1 percent during regular trading, gained after exchanges closed on higher-than-forecast sales.

Profit for S&P 500 companies probably rose 5.9 percent in the third quarter, a forecast that’s been revised upward from an increase of 4.8 percent as of Oct. 10, and sales increased 4 percent, according to analysts’ projections compiled by Bloomberg.

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Asian stocks fell after the regional benchmark yesterday rose the most in two years as China economic data tempered expectations for broader stimulus.
Asia, stocks, China, economy
Tuesday, 21 October 2014 10:54 AM
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