Asian stocks fell for a second week, paring the benchmark index’s second consecutive monthly gain, on concern earnings growth will slow and possible asset purchases by the US Federal Reserve may disappoint investors.
BYD Co tumbled 17 percent in Hong Kong after the Chinese carmaker backed by Warren Buffett said quarterly profit was almost wiped out. Singapore Exchange Ltd lost 7.8 percent after offering to buy Australia’s ASX Ltd. NGK Insulators Ltd, a maker of insulators and industrial ceramic products, plunged 21 percent in Tokyo after cutting its profit forecast.
“I’m a bit cautious at the moment,” said Chris Leung, a Hong Kong-based portfolio manager at Taifook Asset Management Ltd. “Ahead of the Federal Reserve meeting next week, I’d look to take some profit. As economic data turns stronger, I doubt whether the Fed is going to push the size of quantitative easing. There might be a chance that it won’t meet market expectation.”
The MSCI Asia-Pacific Index fell 0.4 percent this week to 129.36, extending last week’s 0.9 percent drop. The gauge rose 2.4 percent this month, its second consecutive gain since US Federal Reserve Chairman Ben Bernanke on Aug. 27 said more securities purchases may be warranted if US growth slows.
The US central bank is expected to announce a decision on its quantitative-easing strategy at the conclusion of the Federal Open Market Committee’s meeting on Tuesday and Wednesday.
Japan’s Nikkei 225 Stock Average dropped 2.4 percent this week. Hong Kong’s Hang Seng Index declined 1.8 percent, South Korea’s KOSPI slipped 0.8 percent, China’s Shanghai Composite Index rose 0.1 percent and Australia’s S&P/ASX 200 Index increased 0.3 percent.
Taiwan’s TAIEX dropped 66.96 points, or 0.80 percent, on Friday on profit taking ahead of strong technical resistance at around the 8,400-point mark, dealers said.
The benchmark index gained 1.5 percent this week and advanced 0.6 percent for the month.
The plastics and chemicals sector suffered the heaviest losses, down 2.07 percent. Textiles fell 1.49 percent, cement stocks lost 0.93 percent, paper and pulp shares dropped 0.81 percent and financial issues closed down 0.68 percent.
The machinery and electronics sector lost 0.6 percent and the construction sector fell 0.38 percent, while foodstuffs closed up 0.13 percent.
“Investors seized falls in other regional markets as an excuse to cut holdings amid fears of a major pullback ahead of 8,400 points, “ Concord Securities (康和證券) analyst Allen Lin said.
Lin said that after the local bourse staged a recent significant rebound, sentiment took a turn toward caution, so the latest downturn came as no surprise.
In other markets on Friday:
Manila ended 0.19 percent, or 8.05 points, higher from Thursday at 4,268.74.
Wellington gained 0.45 percent, or 14.89 points, from Thursday to 3,304.89.
Mumbai closed up 0.46 percent, or 91.30 points, from Thursday at 20,032.34.
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