Tags: Asia | stocks | market | economy

Asian Stocks Fall to Six-Month Low Amid Global Equities Rout

Tuesday, 14 Oct 2014 10:00 AM

Asian stocks fell, with the regional benchmark index heading for a six-month low, as global equities extended losses after the Standard & Poor’s 500 Index capped its biggest three-day loss since 2011.

DLF Ltd. plunged 26 percent after regulators barred India’s largest developer and its chairman from raising funds for failing to disclose information during its initial public offering. Japan Airlines Co. led losses among Asia’s carriers amid growing anxiety over the spread of the Ebola virus. Agile Property Holdings Ltd. rebounded 5.1 percent as the Chinese developer said it was in talks with creditors to delay loan repayments after scrapping a rights offer.

The MSCI Asia Pacific Index fell 0.7 percent to 135.43 as of 4:04 p.m. in Hong Kong, heading for the lowest close since March 25. The gauge dropped 8.8 percent from its year high in July through Monday as the Federal Reserve contemplates when to raise interest rates and a faltering recovery in Europe sparked concern global economic growth will slow.

“Pessimism is coming back into the market amid the slump in U.S. equities,” said Nader Naeimi, who helps manage about $125 billion as head of dynamic asset allocation at Sydney-based AMP Capital Investors Ltd. “It’s been a while since we had a gut-shaking correction in the U.S. It will take a while before the market can build a firmer base. There are a lot of worries about global growth.”

Hong Kong Protests

Hong Kong’s Hang Seng Index dropped 0.4 percent after rising as much as 1.2 percent earlier. Shares rose as police used chain saws and sledgehammers to clear barricades in the city’s business district erected by pro-democracy demonstrators, hours after Chief Executive Leung Chun-ying signaled he’s losing patience with protests that are in their third week.

Japan’s Topix index tumbled 2.3 percent after markets reopened from a holiday. China’s Shanghai Composite Index and the Philippine Stock Exchange Index both lost 0.3 percent. India’s S&P BSE Sensex index was little changed. South Korea’s Kospi index added 0.1 percent. New Zealand’s NZX 50 Index declined 0.5 percent. Australia’s S&P/ASX 200 Index climbed 1 percent.

The S&P 500 fell 1.7 percent Monday in New York, bringing losses the past three days to 4.8 percent, the biggest such decline since November 2011.

A rout in global equities wiped $1.54 trillion from shares last week, with the S&P 500 tumbling 3.1 percent for its worst drop in two years, amid growing concern of an international economic slowdown. Fed officials said over the weekend that the threat from overseas may lead to rate increases being delayed. The International Monetary Fund cut its forecast for global growth last week and said the euro area faces the risk of a recession.

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Asian stocks fell, with the regional benchmark index heading for a six-month low, as global equities extended losses after the Standard Poor's 500 Index capped its biggest three-day loss since 2011.
Asia, stocks, market, economy
449
2014-00-14
Tuesday, 14 Oct 2014 10:00 AM
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