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Asian stocks fell, dragging regional equities lower for a seventh day, after the weakest growth in Chinese industrial output since 2008 added to evidence the world's second-biggest economy is losing momentum.
China Petroleum & Chemical Corp, Asia's No. 1 refiner, fell 6.8 per cent in Hong Kong after agreeing to sell a 107 billion yuan ($17.5 billion) stake in its retail business, dragging energy firms to the largest decline among 10 industry groups on the regional index. KB Financial Group Inc slid 5.2 per cent in Seoul after Korea Economic Daily reported the board plans to recommend that Chairman Lim Young Rok resigns. Macquarie Group Ltd gained 1 per cent in Sydney after the bank said it will post higher profit this year due to increased fees.
The MSCI Asia Pacific excluding Japan Index dropped 1.1 per cent to 495.27 as of 6:33 pm in Hong Kong. Japanese markets are closed for a holiday. The measure, which posted the longest streak of declines since June 2011, slumped 2.5 per cent last week, the biggest weekly loss since March.
"Chinese data for August indicates the latest soft patch is continuing," said Shane Oliver, a Sydney-based global strategist at AMP Capital Investors Ltd, which oversees about $131 billion. "Benign inflation readings for August suggest China has plenty of scope for further easing, which we expect in the months ahead. A correction would be healthy in allowing shares to let off a bit of steam and should be seen as a buying opportunity."
China factory production rose 6.9 per cent in August from a year earlier, the National Bureau of Statistics said on September 13 in Beijing, compared with 9 per cent in July and the 8.8 per cent median estimate in a Bloomberg News survey of economists. Retail sales gained 11.9 per cent and fixed-asset investment in the January-August period increased 16.5 per cent.
Property slump
The data signal the impact of China's property slump on the economy is deepening, with the decline in home sales accelerating last month and electricity output falling for the first time since 2009. The slowdown will test Premier Li Keqiang's reluctance to spur growth with monetary stimulus, as risks multiply to his 2014 expansion goal.
Hong Kong's Hang Seng Index fell 1 per cent and the Hang Seng China Enterprises Index of mainland firms listed in the city slid 1.6 per cent. Australia's S&P/ASX 200 Index declined 1 per cent. India's S&P BSE Sensex Index lost 0.9 per cent.
South Korea's Kospi index and New Zealand's NZX 50 Index lost 0.3 per cent. Singapore's Straits Times Index fell 1 per cent, while Taiwan's Taiex Index slipped 0.1 per cent. The Shanghai Composite Index gained 0.3 per cent.
US futures
Futures on the Standard & Poor's 500 Index declined 0.2 per cent. The underlying gauge dropped last week, ending the longest streak of advances this year, as speculation grew that the US economy is recovering enough to justify higher interest rates sooner than anticipated.
The Federal Reserve, which begins a two-day policy meeting on Tuesday, is assessing the strength of the economy as it winds down a bond-buying programme that's on track to end this year. The central bank has said since March that interest rates would stay low for a "considerable time" after it completes the asset purchases.
China Petroleum, or Sinopec as it is known, fell 6.8 per cent to HK$7.25 in Hong Kong. The company will sell a combined 29.99 per cent stake to 25 investors including Fosun International Ltd., run by billionaire Guo Guangchang. China Life will buy 10 billion yuan of shares while gas supplier ENN Energy Holdings Ltd committed to 4 billion yuan. A fund backed by Tencent Holdings Ltd, Asia's biggest listed Internet company, is investing 10 billion yuan.
Lim Dismissal
KB Financial slumped 5.2 percent to 39,000 won. The board will discuss the dismissal of Lim if the chairman refuses to resign voluntarily, the Korea Economic Daily reported. The firm confirmed the board will discuss the issue today.
Lynas Corp. (LYC) tumbled 13 percent in Sydney to 13 Australian cents after the rare-earth miner ceased talks with Nomura Holdings Inc. on existing debt.
Among stocks that rose, Macquarie gained 1 percent to A$58.55 after Australia's largest investment bank said profit in the six months to Sept. 30 will rise much as 30 percent from a year earlier. The result for the second half of the fiscal year to March 31, 2015, will be "moderately" higher than a year earlier, it forecast in a statement.
