Asian Stocks Retreat on Taper Bets While Japan Advances on Yen
- Investors weigh the prospects that ECB will reduce stimulus
- Fed officials’ hawkish comments prompt rate-rise bets
Asian stocks outside Japan dropped for the first time in three days on concern central banks will reduce stimulus, while the Topix index climbed after the yen weakened.
The MSCI Asia Pacific Excluding Japan Index fell 0.3 percent to 455.11 as of 4:10 p.m. in Hong Kong, led by losses in Indonesia and New Zealand. Bonds, currencies and stocks were shaken Tuesday after Bloomberg News reported the European Central Bank is likely to gradually taper asset purchases as it ends quantitative easing, citing officials who asked not to be identified. The odds the Federal Reserve will raise interest rates by December climbed to 61 percent on Tuesday, from about 50 percent a week earlier. The Topix added 0.6 percent on Wednesday after the yen fell the most against the dollar in more than a month.