Asian stocks fell, briefly dragging China’s key index into a so-called bear market, as Maanshan Iron & Steel Co reported losses and shipping rates slumped.
Maanshan Steel, China’s No. 4 listed steelmaker, lost 7.5 per cent, while China Cosco Holdings Ltd., the world’s largest operator of dry-bulk ships, slumped 7.4 per cent in Shanghai. Tokio Marine Holdings dropped 2 per cent after Japanese regulators said new guidelines will hurt insurers’ solvency ratios. Sony Corp sank 3.9 per cent after cutting the price of its PlayStation 3 game console.
The MSCI Asia Pacific Index fell 0.7 per cent to 109.93 as of 6.23 pm in Tokyo, erasing an earlier gain of 0.6 per cent. The gauge has rallied 56 per cent from a more than five-year low on March 9 amid speculation the global economy is recovering.
“We may need to see a healthy pullback,” said Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $14 billion. “Investors are still waiting for better entry levels.”
Japan’s Nikkei 225 Stock Average lost 0.8 per cent to 10,204, while Hong Kong’s Hang Seng Index sank 1.7 per cent. China’s Shanghai Composite Index dropped 4.3 per cent, taking its drop from this year’s high on August 4 to 19.8 per cent. That’s just short of the 20 per cent tumble that signals a bear market.
Among stocks that rose today, Honda Motor Co added 2 per cent after Nomura Holdings Inc upgraded Japan’s auto industry. Qantas Airways, Australia’s biggest airline, advanced 3.5 per cent as it signaled improving passenger volumes.
Futures on the Standard & Poor’s 500 Index lost 1.1 per cent. The US gauge rose 1.1 per cent Tuesday, aided by better-than- estimated earnings at Home Depot and Target Corp.