Asian stocks declined, after rebounding more than 5 percent over the previous two days, as energy shares sank and a stronger yen weighed on Japanese shares. Chinese equities rose to the highest in a month, reversing a midday loss.
The MSCI Asia Pacific Index lost 0.9 percent to 117.64 as of 4:24 p.m. in Hong Kong. The gauge had rallied this week after sinking to a 3 1/2-year low on Friday amid concern about the growth outlook for the world’s largest economies and the rout in oil. Woodside Petroleum Ltd. fell 6.9 percent in Sydney on Wednesday after saying full-year profit declined 99 percent as the energy producer wrote down the value of its assets.
The Topix index lost 1.1 percent, wiping out an earlier gain of 1.1 percent. Japanese stocks are coming off the best two-day rally since 2008, including an 8 percent surge on Monday. The yen rose 0.5 percent to 113.47 per dollar after climbing 0.5 percent Tuesday as the agreement between Saudi Arabia and Russia weighed on oil prices, sending investors toward haven assets.
Losses in Credit Suisse Group AG and Daimler AG after earnings announcements dragged European stocks lower, even as commodity producers rallied the most since 2011.
After a day of jumps and slumps, the Stoxx Europe 600 Index closed down 0.2 percent, dropping for a fourth straight session. Credit Suisse slumped to its lowest price since 1992 after posting its biggest quarterly loss in seven years. Daimler AG fell 3.2 percent after saying growth will slow down. That contrasted with energy and commodity producers, which remained up all day. Even Royal Dutch Shell Plc, which reported a slump in profit, added 4.7 percent.
Fluctuations in the Stoxx 600 mirrored moved in oil. The gauge climbed as much as 1.1 percent and dropped 1.5 percent.
The slowdown in emerging countries is posing a major threat to recovery in the euro area, the European Commission said today, as it trimmed its 2016 growth forecast for the 19-nation region and warned inflation would be much slower than expected. Bank of England Governor Mark Carney cited similar concerns. In a speech in Frankfurt, Mario Draghi said the fact that inflation is weak globally won’t stop the European Central Bank from adding stimulus for the euro area if needed.
Among other stocks moving on earnings, ING Groep NV jumped 8.9 percent as quarterly profit beat estimates. AstraZeneca Plc lost 6.1 percent after forecasting a decline in earnings and sales for the year. Swisscom AG dropped 2.9 percent after annual net income missed projections.
Source : Bloomberg