Asian Shares Pare Biggest Weekly Advance Since 2011 as Oil Drops

Asian shares fell, paring the biggest weekly rally since December 2011, as the yen strengthened and a buildup in oil supplies dragged crude prices and energy producers lower.

The MSCI Asia Pacific Index declined 0.7 percent to 119.43 as of 4:13 p.m. in Hong Kong. The gauge rose 5.7 percent over five days after sinking to a 3 1/2-year low last week. Speculation that the global selloff had gone too far and that central banks will take steps necessary to bolster markets lifted shares early in the week. That optimism faded as concerns over moves in crude and the yen resurfaced.

Even after this week’s gains, the MSCI Asia Pacific Index remains 9.5 percent lower this year. Since the start of January, a combination of tumbling oil prices, concern about the slowdown in Asia’s largest economy and a selloff in bank stocks sent a measure of global stocks into a bear market for the first time in five years.

The Topix index declined 1.5 percent after the yen rose 0.8 percent Thursday. A strengthening currency dents the earnings outlook for exporters. Even with Friday’s losses, the benchmark gauge finished the week with a gain of 8 percent, the most since 2009, amid optimism the Bank of Japan will come forth with more monetary stimulus.

Source : Bloomberg

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Asian Stocks Pare Biggest Weekly Advance Since 2011 as Oil Drops

Asian stocks fell, paring the biggest weekly rally since December 2011, as the yen strengthened and a buildup in oil supplies dragged crude prices and energy producers lower.

The MSCI Asia Pacific Index declined 0.5 percent to 119.70 as of 9:07 a.m. in Tokyo. The gauge rose 6.5 percent over four days going into the final trading day of this week after sinking to a 3 1/2-year low last week amid concern about the growth outlook for the world’s largest economies and the rout in oil.

Even after this week’s gains, the MSCI Asia Pacific Index remains 9.2 percent lower this year. Since the start of January, a combination of tumbling oil prices, concern about the slowdown in Asia’s largest economy and a selloff in bank stocks sent a measure of global stocks into a bear market for the first time in five years.

Source: Bloomberg

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