Asian Stocks Drop Seventh Day on Fed Concern; China Shares Fall

Asian stocks fell, with the regional benchmark heading for its longest losing streak since September, as investors weighed the outlook for U.S. interest rates and Chinese shares retreated from a seven-year high.

CRRC Corp., formed by the merger of Chinese rail companies, tumbled 13 percent as it lost more than $ 10 billion in market value the day after its Hong Kong debut. Nissan Motor Co., a carmaker that gets more than 80 percent of sales abroad, slipped 3.2 percent in Tokyo as the yen strengthened. HTC Corp. sank 9.9 percent in Taipei as the smartphone maker was downgraded by brokerages after cutting its sales forecast.

The MSCI Asia Pacific Index declined 1 percent to 145.97 as of 4:05 p.m. in Hong Kong, the biggest drop since May 7. The Standard & Poor’s 500 Index fell to a two-month low on Monday as investors considered the timing of an interest-rate increase and the outlook for Greece’s debt talks. Strong jobs data Friday bolstered bets the Federal Reserve will raise interest rates this year. German Chancellor Angela Merkel demanded urgent action from the Greek government on Monday after it rejected the terms of an aid package again last week.

Source: Bloomberg

MARKET

Leave a Reply

Your email address will not be published. Required fields are marked *