Asian Stocks Follow U.S. Equities Lower on Telecom Shares

Asian stocks fell, paring yesterday’s jump after U.S. equities declined, with telecommunications shares leading the slide.

CITIC 21CN Co., a provider of telecommunication services, slumped 6 percent in Hong Kong. Nidec Corp. sank 4.1 percent after the Japanese precision-motor maker reported earnings in line with estimates. Hyundai Motor Co. jumped 5.9 percent in Seoul trading after posting third-quarter operating profit that beat some analysts’ estimates.

The MSCI Asia Pacific Index lost 0.3 percent to 137.46 as of 4:09 p.m. in Hong Kong after surging 1.4 percent yesterday. The Standard & Poor’s 500 Index declined 0.7 percent as energy shares led losses amid a drop in oil prices. The Asian equity gauge swung an average 0.9 percent each day this month, compared with 0.5 percent for the first nine months of the year, data compiled by Bloomberg show.

‘There’s going to continue to be volatility,’’ said Donald Williams, Sydney-based chief investment officer at Platypus Asset Management Ltd. that oversees about A$1.6 billion ($1.4 billion). “It’s a combination of profit taking and the fact that as the economy recovers, it’s getting harder and harder to get the same earnings growth as you could earlier in the cycle.”

Japan’s Topix index and South Korea’s Kospi index both slipped 0.3 percent. Australia’s S&P/ASX 200 Index lost 0.1 percent, while New Zealand’s NZX 50 Index added 0.3 percent. Singapore’s Straits Times Index rose 0.9 percent after the market reopened following a public holiday.

China Manufacturing

Hong Kong’s Hang Seng Index fell 0.3 percent and the Hang Seng China Enterprises Index of Chinese shares traded in the city added 0.1 percent. The Shanghai Composite Index slid 1 percent even as a Chinese manufacturing gauge rose in October,

The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics rose to 50.4. That compared with a median estimate of 50.2 in a Bloomberg News survey, the same level as September’s final reading. Numbers above 50 indicate expansion.

Futures on the S&P 500 added 0.6 percent today. The cost of living in the U.S. barely rose in September, with the consumer-price index climbing 0.1 percent after decreasing 0.2 percent in August, a Labor Department report showed.

West Texas Intermediate traded near the lowest closing price in two years after government data showed crude stockpiles gained more than forecast in the U.S.

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