Asian Stocks extend loss

Asian stocks fell in early trading on Friday, with declines in Japanese and Chinese equities putting the regional index on track for its longest run of weekly losses in more than 18 months. Asian credit risk headed for the highest in three months while gold fell after surging overnight. The MSCI Asia Pacific Index lost 0.9 percent by 12:42 p.m. in Tokyo, set for a fourth week of decline. Japan’s share prices fell 241.09 points to close at 15,454.80 points in the morning session of the Tokyo Stock Exchange, tracking falls on Wall Street and hit by a rally in the yen against the dollar. The Topix (TPX) index sank 1.3 percent after the yen jumped the most since September yesterday. Standard & Poor’s 500 Index futures gained 0.2 percent. The cost of insuring Asian bonds from default rose. Gold fell 0.3 percent, paring the longest weekly winning streak since September 2012. Natural gas rose 3 percent in early trade. Global stocks have retreated this week as mixed company earnings and signs of weakness in China’s economy added to concern that cuts to US Federal Reserve stimulus will destabilize emerging marets. The Fed meets next week, while State Street Corp. and Procter & Gamble Co. report earnings today. More than 1,150 companies on Japan’s Topix report earnings in the next fortnight. More than three stocks fell for each that rose on the Asia-Pacific gauge, which hasn’t declined for four straight weeks since June 2012. The measure is down 1.3 percent since Jan. 17. Hong Kong’s benchmark equity index slid 0.7 percent as the Shanghai Composite Index climbed 0.9 percent. China’s benchmark seven-day repurchase rate dropped 98 basis points to 4.42 percent, according to a weighted average by the National Inter-bank Funding Center. The central bank pumped more than 375 billion yuan ($62 billion) into the banking system this week to ease funding. Meanwhile, the Sydney-based head of investment strategy at AMP Capital Investors Ltd, says “A correction could occur.” Shane Oliver says “We have to expect more volatility. Shares are no longer dirt cheap, meaning the easy gains are behind us and we are now more dependent on rising earnings coming through,” according to AFP.