Asian Stocks Rebound From Six-Month Low as Japan AdvancesJonathan Burgos and Kana Nishizawa
Asian stocks rose, with the regional benchmark index rebounding from a six-month low, as Japanese equities climbed on a weaker yen after the U.S. market rallied from its worst three-day slump since 2011.
Sony Corp., an electronics maker that gets most its sales outside Japan, climbed 1.5 percent. Japan Airlines Co. paced gains among Asian carriers as crude oil’s bear-market rout continued. New World Development Co. rose 2.9 percent as the Hong Kong developer won a tender for a residential site. Zoomlion Heavy Industry Science and Technology Co. plunged to a record low after China’s biggest maker of construction equipment forecast a slump in third-quarter profit.
The MSCI Asia Pacific Index rose 0.3 percent to 135.82 as of 8:45 p.m. in Hong Kong. The gauge dropped 9.4 percent from its year high in July through yesterday as the Federal Reserve contemplates when to raise interest rates and a faltering recovery in Europe sparks concern global economic growth will slow. China today reported weaker-than-expected inflation, spurring speculation the government may introduce additional stimulus measures.
“There’s no huge change in the scenario, but investors have been looking for the right timing to come into the market and are betting on a rebound,” Naoki Fujiwara, Tokyo-based chief fund manager at Shinkin Asset Management Co., which oversees about $6 billion. “The stronger dollar will pressure emerging economies, but for Japan a weaker yen will help corporate earnings. China’s slower inflation points to weakness, but the government has been introducing stimulus.”
China’s Shanghai Composite Index climbed 0.6 percent. Hong Kong’s Hang Seng Index rose 0.4 percent. Japan’s Topix index added 0.8 percent as the yen weakened against the dollar. New Zealand’s NZX 50 Index rose 0.3 percent. Australia’s S&P/ASX 200 Index jumped 0.7 percent. South Korea’s Kospi index lost 0.2 percent after a report showed the nation’s jobless rate was unchanged at 3.5 percent last month.
Futures on the S&P 500 slid 1.2 percent today. The underlying gauge added 0.2 percent yesterday, after rallying as much as 1.3 percent. Energy shares in the S&P 500 entered a bear market as Brent crude plunged 4.2 percent to an almost four-year low.
A rout in global equities wiped $1.54 trillion from shares last week, with the S&P 500 tumbling 3.1 percent for its worst drop in two years, amid growing concern of an international economic slowdown. Fed officials said over the weekend that the threat from overseas may lead to rate increases being delayed. The International Monetary Fund cut its forecast for global growth last week.
“We’re likely to see more volatility,” Tim Schroeders, a portfolio manager who helps oversee $1 billion in equities at Pengana Capital Ltd. in Melbourne, said by phone. “As growth continues to disappoint, there’s ongoing concern about geopolitical risks and the spread of the Ebola virus.”
Hong Kong police said they would investigate a complaint alleging an excessive use of force against a pro-democracy protester. Tensions escalated this week after police moved to retake the areas controlled by protesters as Chief Executive Officer Leung Chun-ying said he was losing patience with the demonstrations that have disrupted traffic and commerce.