Asia stocks fell, with the regional benchmark trimming its strongest quarterly gain in 18 months, as industrial companies led declines. China shares retreated after surging yesterday to a seven-year high.
Central Japan Railway Co., which gained 27 percent this year through Monday, slumped 5.4 percent. Poly Real Estate Group Co. dropped 3 percent as a gauge of China property stocks fell after climbing 7.3 percent yesterday before the government announced measures to boost the market. BHP Billiton Ltd., the world’s bigggest mining company, added 3.1 percent as energy and materials firms rose.
The MSCI Asia Pacific Index slid 0.3 percent to 146.11 as of 4:05 p.m. in Hong Kong, on course for a 6 percent quarterly advance. Shares rose as much as 0.8 percent earlier after China’s central bank eased mortgage restrictions and on expectations for further stimulus in Asia’s largest economy.
The Shanghai Composite Index lost 1 percent, erasing a 1.3 percent advance after the gauge’s relative strength index climbed to 80 yesterday, above the 70 level that some traders take as a signal to sell. International investors have been paring holdings as valuations climb to the highest since 2010 and gauges of Chinese growth decline. The Shanghai Composite advanced 85 percent in the past 12 months through yesterday on bets the government will step up monetary stimulus.
The Hang Seng China Enterprises Index of mainland companies in Hong Kong rose 0.3 percent, paring a 2.4 percent surge. The Hang Seng Index added 0.2 percent.