Asian Stocks Slide as Energy, Technology Companies Lead Losses

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Asian stocks fell as energy shares retreated amid a slump in oil and technology companies led losses. Chinese shares in Hong Kong dropped to an eight-month low.

Samsung Electronics Co. slid 3.2 percent to a 10-month low in Seoul amid disappointment with its latest smartphones to challenge Apple Inc. Taiwan Semiconductor Manufacturing Co. slid 1.6 percent in Taipei, the second-biggest drag on the index after Samsung. Oil explorer Inpex Corp. slid 0.7 percent in Tokyo as Iran said OPEC crude production may hit a record after sanctions on the country are lifted.

The MSCI Asia-Pacific Index slipped 0.5 percent to 137.66 as of 1 p.m. in London after the measure sank 2 percent last week for a fourth weekly decline. The Hang Seng China Enterprises Index of mainland stocks in Hong Kong sank 0.9 percent as foreigners pulled funds amid concern about the weaker outlook for the yuan and economic growth. Japanese shares climbed as data showed the nation’s economy contracted less than economists expected.

“Investors expect the depreciation of the yuan to continue,” said Sam Chi Yung, a strategist at Delta Asia Securities Ltd. in Hong Kong. A weaker currency would make Chinese assets less attractive to foreigners, he said, while any withdrawal by the government from the market would further “frighten” investors.

Hong Kong’s Hang Seng Index lost 0.7 percent, while the Shanghai Composite Index rose 0.7 percent. Net outflows from Chinese and Hong Kong equities reached $531 million in the week to Aug. 12, the ninth week of sales out of the past 10, China International Capital Corp. said.

Japan GDP

The Topix index rose 0.5 percent as gross domestic product fell 1.6 percent on an annualized basis in the April-June quarter. Economists had been expecting a 1.8 percent drop.

Korea’s Kospi index slipped 0.8 percent. Australia’s S&P/ASX 200 Index gained 0.2 percent. New Zealand’s NZX 50 Index increased 0.5 percent. Taiwan’s Taiex index sank 1.1 percent, as did Singapore’s Straits Times Index.

Futures on the S&P 500 dropped 0.1 percent. The underlying measure rose 0.4 percent on Friday to cap a 0.7 percent weekly gain, recovering after China’s devaluation of the yuan sent the measure lower.

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