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Asian Stocks Fall After Hitting Most Overbought Level Since 1997

Asian Stocks Fall After Hitting Most Overbought Level Since 1997

(Bloomberg) -- Most equity markets retreated in the wake of MSCI AC Asia Pacific Index reaching its most overbought level in 20 years on Wednesday. Asian stocks fell from a record as a seven-day rally lost steam and profit-taking gained traction amid a jump in government bond yields.

Asian Stocks Fall After Hitting Most Overbought Level Since 1997

The MSCI Asia Pacific Index fell 0.4 percent to 180.18 as of 4:43 p.m. in Hong Kong, heading for its sharpest loss since Dec. 15 after paring an earlier loss of as much 0.7 percent. Technology and consumer companies paced the decline. Japanese equities retreated for the first time this year after the yen strengthened to a six-week high Wednesday. Stocks fell for a second day in Australia as its 10-year bond yield climbed four basis points to 2.76 percent.

“This is standard profit-taking and doesn’t speak anything about the underlying fundamentals of markets in the region," said Haj Narvaez, president at BPI Securities Corp. “This a healthy breather. The demand outlook for riskier assets remains positive because of synchronized global growth."

Hong Kong’s Hang Seng Index fluctuated between gains and losses before closing higher for the 13th straight day to extend its longest rally since 1969. Philippine stocks, among the most expensive in the region, posted its biggest loss in 10 month after tumbling as much as 2 percent earlier Thursday.

Summary

  • Topix index -0.2%, halting 4-day rally; Nikkei 225 -0.3%
    • Japanese Stocks Decline for First Time in 2018 Amid Stronger Yen
    • Saizeriya Falls Most in Two Years as Higher Costs Hurt Earnings
    • Colopl Tumbles as CS Says Big Profit Decline Not Yet Priced In
    • MonotaRO Tumbles as Adjusted Monthly Sales Growth Rate Slows
    • Oriental Land Heads for Record High as Daiwa Upgrades to Buy
  • Hang Seng Index +0.2%, 13th straight day of gain; Hang Seng China Enterprises Index little changed, Shanghai Composite Index +0.1%, Shenzhen Composite +0.4%
    • H.K. Stocks Record Rally in Jeopardy as Tencent, Developers Fall
    • China Firms Clarify Blockchain Links Following Share Price Gains
    • Credit Suisse Hikes Price Targets on Raft of China Pharma Stocks
    • Bank of China A Shares Raised to Neutral at Nomura; PT 4.12 Yuan
  • Taiex -0.2%, 3rd straight day of declines, longest since Dec. 7
    • Sovereign Bonds Rise Along With U.S. Treasuries: Inside Taiwan
  • Kospi -0.5%, Kospi 200 -0.6%
    • Kakao Falls as South Korea Seeks to Shut Down Crypto Exchanges
    • Goldman Says Hyundai Motor Group’s 4Q Earnings May Disappoint
  • S&P/ASX 200 -0.5%; New Zealand’s S&P/NZX 50 -1.4%, sharpest loss since March 20
    • Australian Stocks Decline for Second Day as Asia’s Equities Fall
  • Straits Times Index -0.1%; Malaysia’s KLCI -0.5%; Jakarta Composite Index -0.2%; Philippine Stock Exchange Index -1.2%; Vietnam’s VN-Index +1%; Thailand’s SET Index +0.3%
    • Philippine Stocks Sink Led by Ayala Land, BPI, Universal Robina
    • Energy Absolute Surges After Thanachart More Than Doubles Target
    • Higher Commodity Prices, Low Valuations Favor Indonesia Builders
  • India’s Sensex +0.4%; SGX Nifty 50 Index +0.3%
    • India’s Sensex Fluctuates Amid Global Decline, Ahead of Earnings
    • IDFC Bank Surges to Six-Month High on Merger Reports

To contact the reporter on this story: Ian Sayson in Manila at isayson@bloomberg.net.

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Rebecca Jones

©2018 Bloomberg L.P.