Short Sellers Descend on Asia Stocks as Profit Outlook Wilts
- Regional shares trade at lowest relative valuation since 2004
- Australia, Hong Kong, Singapore see biggest rise in shorts
Short Sellers Descend on Asian Stocks
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The cheaper Asian stocks get, the more emboldened bears get in betting on further declines.
Short interest in six regional markets is up 18 percent this year, and a separate measure of investor demand to borrow shares and sell them rose by a record, according to Markit Ltd. The MSCI Asia Pacific Index is trading at the lowest valuation relative to global equities in more than a decade as the gauge heads for a second straight annual retreat. Australia saw the biggest increase in bearish bets, followed by Hong Kong and Singapore, the Markit data show.