Asian stocks fall
Friday, 5 October 2007
SINGAPORE, Oct 4 (Bloomberg): Asian stocks fell on concern a rally that drove five of the region's six biggest markets to records in the past week more than reflects earnings prospects.
BHP Billiton, the world's biggest resources company, slid after crude closed below $80 a barrel for the first time in a week. Posco, Asia's third-largest steelmaker, retreated after its biggest one-day gain in five years prompted South Korea's stock exchange to caution investors about the stock.
China Mobile Ltd. led declines in Hong Kong, the world's best-performing market since the Chinese government said Aug. 20 it will allow some citizens to invest in the city's equities.
``There's quite a lot of risk in the markets and valuations aren't very cheap,'' said Christopher Wong, who helps manage $50 billion at Aberdeen Asset Management in Singapore. ``Investors have been increasing their risk appetite, whether that's justified remains to be seen.''
The Morgan Stanley Capital International Asia Pacific Index lost 1 per cent to 164.71 as of 3:42 p.m. in Tokyo. The drop, the most since Sept. 18, snapped a five-day advance that drove the measure to a high. Its 14-day relative strength index closed above 70 on each of the past four days, a signal some investors view as a signal to sell.
Japan's Nikkei 225 Stock Average, which failed to reach a high in the recent rally, lost 0.7 per cent to 17,077.26. Australia's key index fell the most in seven weeks and India's Sensitive Index ended its best winning streak in four years. China, where the CSI 300 Index closed Sept. 28 at a record, is shut for a week-long holiday.
Technology stocks led declines in the US yesterday after Morgan Stanley & Co. told investors to sell shares of Intel Corp. and Advanced Micro Devices Inc., the world's two biggest makers of computer processors. The Standard & Poor's 500 Index lost 0.5 per cent, the biggest drop in more than a week.
BHP Billiton, the world's biggest resources company, slid after crude closed below $80 a barrel for the first time in a week. Posco, Asia's third-largest steelmaker, retreated after its biggest one-day gain in five years prompted South Korea's stock exchange to caution investors about the stock.
China Mobile Ltd. led declines in Hong Kong, the world's best-performing market since the Chinese government said Aug. 20 it will allow some citizens to invest in the city's equities.
``There's quite a lot of risk in the markets and valuations aren't very cheap,'' said Christopher Wong, who helps manage $50 billion at Aberdeen Asset Management in Singapore. ``Investors have been increasing their risk appetite, whether that's justified remains to be seen.''
The Morgan Stanley Capital International Asia Pacific Index lost 1 per cent to 164.71 as of 3:42 p.m. in Tokyo. The drop, the most since Sept. 18, snapped a five-day advance that drove the measure to a high. Its 14-day relative strength index closed above 70 on each of the past four days, a signal some investors view as a signal to sell.
Japan's Nikkei 225 Stock Average, which failed to reach a high in the recent rally, lost 0.7 per cent to 17,077.26. Australia's key index fell the most in seven weeks and India's Sensitive Index ended its best winning streak in four years. China, where the CSI 300 Index closed Sept. 28 at a record, is shut for a week-long holiday.
Technology stocks led declines in the US yesterday after Morgan Stanley & Co. told investors to sell shares of Intel Corp. and Advanced Micro Devices Inc., the world's two biggest makers of computer processors. The Standard & Poor's 500 Index lost 0.5 per cent, the biggest drop in more than a week.