Asian stocks fell, with the regional benchmark index headed for the biggest two-day loss in two months, as companies cut forecasts and Australia’s central bank trimmed its national growth outlook. Shares pared losses after data added to signs China’s economy is bottoming.
Nexon Co., a developer of online games, slumped 16 percent in Tokyo after cutting its net-income forecast. Emeco Holdings Ltd., a mining-equipment maker, plunged 17 percent in Sydney after reducing its profit target. National Australia Bank Ltd. (NAB), the nation’s fourth-biggest lender by market value, dropped in Sydney. Chinese developer Guangzhou R&F Properties Company Ltd. rose 2.2 percent in Hong Kong.
The MSCI Asia Pacific Index fell 0.3 percent to 121.43 as of 3:16 p.m. in Tokyo after dropping as much as 0.8 percent. About two stocks slid for each that gained on the index, which has declined 0.9 percent this week.
The Chinese economic data is “pointing to an economy that’s improving and bottoming out, but the point is how significantly it can rebound and how sustainably it can rebound,” said Ben Kwong, chief operating officer at KGI Asia Ltd., a Hong Kong-based brokerage. “We have to retreat a bit and consolidate at current levels. Maybe in December we may see a year-end rally.”
The MSCI Asia Pacific gauge gained 12 percent through yesterday from this year’s low on June 4 as central banks added stimulus to spur growth and data showed a slowdown in China may be bottoming. The index traded at 13.3 times estimated earnings as of today, compared with 13.2 for the Standard & Poor’s 500 Index and 12.1 for the Stoxx Europe 600 Index
Nexon Co., a developer of online games, slumped 16 percent in Tokyo after cutting its net-income forecast. Emeco Holdings Ltd., a mining-equipment maker, plunged 17 percent in Sydney after reducing its profit target. National Australia Bank Ltd. (NAB), the nation’s fourth-biggest lender by market value, dropped in Sydney. Chinese developer Guangzhou R&F Properties Company Ltd. rose 2.2 percent in Hong Kong.
The MSCI Asia Pacific Index fell 0.3 percent to 121.43 as of 3:16 p.m. in Tokyo after dropping as much as 0.8 percent. About two stocks slid for each that gained on the index, which has declined 0.9 percent this week.
The Chinese economic data is “pointing to an economy that’s improving and bottoming out, but the point is how significantly it can rebound and how sustainably it can rebound,” said Ben Kwong, chief operating officer at KGI Asia Ltd., a Hong Kong-based brokerage. “We have to retreat a bit and consolidate at current levels. Maybe in December we may see a year-end rally.”
The MSCI Asia Pacific gauge gained 12 percent through yesterday from this year’s low on June 4 as central banks added stimulus to spur growth and data showed a slowdown in China may be bottoming. The index traded at 13.3 times estimated earnings as of today, compared with 13.2 for the Standard & Poor’s 500 Index and 12.1 for the Stoxx Europe 600 Index
