Asia Stock Investors Look Ahead to September Reprieve
Given the kind of month Asia stocks investors are having, a quiet September would likely be more than welcome at this point.
(Bloomberg) -- Given the kind of month Asia stocks investors are having, a quiet September would likely be more than welcome at this point.
With two more trading days to go, the MSCI Asia Pacific Index is closing in on a more than 4% loss, its worst August performance since 2015, according to data compiled by Bloomberg. The benchmark was little changed Wednesday following a negative U.S. session overnight as trade concerns remain the obvious overhang for markets. Indexes in Japan and Hong Kong were flat while those in Taiwan and Korea posted modest gains.
August has generally been a write-off for Asia stocks over the past 10 years, with the benchmark declining 2% on average. September is a little bit better.
Since 2009 the index has seen monthly declines four times, with an average increase over the last ten years of about 0.5%. Furthermore, its strongest month, in 2010, was well above that seen in August.
| MSCI Asia Pacific Index | August (2009-2018) | September (2009-2018) |
|---|---|---|
| High | 1.4% | 8.4% |
| Low | -8.6% | -9.5% |
| Average | -2% | 0.5% |
| No. of Monthly Losses | 7 | 4 |
| Source: Bloomberg | ||
That said, it may prove difficult to convince many investors that the turn of the calendar page alone will calm markets. After all, the same macroeconomic issues plaguing Asian markets this week will still be there the next, be it the U.S.-China trade war, President Donald Trump’s capricious tweets, inverted yield curves flashing recession warnings, or the ongoing protests roiling Hong Kong.
“Risk-off remains in vogue as trade disputes continue to flare, suggesting any risk assets recovery will remain extremely fragile,” said Stephen Innes, managing partner with Valour Markets Pte Ltd Singapore in a note to clients.
Stock Market Summary
- MSCI Asia Pacific Index ex-Japan little changed
- MSCI Asia Pacific Index up 0.1%
- Japan’s Topix index little changed; Nikkei 225 up 0.1%
- Hong Kong’s Hang Seng Index little changed; Hang Seng China Enterprises up 0.2%; Shanghai Composite down 0.4%; CSI 300 down 0.5%
- Taiwan’s Taiex index up 0.5%
- South Korea’s Kospi index up 0.5%; Kospi 200 up 0.5%
- Australia’s S&P/ASX 200 little changed; New Zealand’s S&P/NZX 50 up 0.9%
- Singapore’s Straits Times Index little changed; Malaysia’s KLCI down 0.2%; Philippine Stock Exchange Index little changed; Jakarta Composite up 0.3%; Vietnam’s VN Index up 0.5%
- S&P 500 e-mini futures up 0.3% after index closed down 0.3% in last session
To contact the reporter on this story: Eric Lam in Hong Kong at elam87@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Cormac Mullen, Lianting Tu
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