Asian Shares Mixed as Materials Drop Offset by Property Gain

  • Fortescue Metals, Rio Tinto among worst performers in region
  • Chinese developers jump as Goldman upgrades KWG Property

Asian stocks traded mixed amid a tumble in miners and steelmakers triggered by a selloff in iron ore, countered by a rally in Chinese developers.

The MSCI AC Asia Pacific Index was 0.1 percent higher as of 5:35 p.m. in Hong Kong, even as three shares fell for every two that rose. Iron ore’s worst one-day price slump in more than a year hit Australian miners, Japanese trading houses and steelmakers throughout the region. This decline was offset by a rally in Hong Kong-listed Chinese developers as Goldman Sachs raised its outlook for companies including KWG Property Holding Ltd.

Japan’s Topix closed 0.8 percent lower after U.S. President Donald Trump’s comment that the dollar was too strong propelled the yen to its strongest level against the greenback since November earlier.

“The market expectation for reflation was too high,” said Hao Hong, a Hong Kong-based strategist at Bocom International Holdings Co Ltd. “The latest CPI shows demand in China was in fact weaker than expected and iron ore inventory at the country’s ports is building up.” Asian stocks will become more volatile in the near term as investors may sell cyclicals and add defensive stocks amid the fading reflation trade, Hong added.

Summary

  • Topix -0.8%, Nikkei 225 -0.7%
    • Mitsui & Co. -3.9%, JFE -3.3%
  • Shanghai Composite Index +0.1%, Hang Seng Index -0.2%, Hang Seng China Enterprises Index little changed, Taiwan Stock Exchange Weighted Index +0.2%
    • Guangzhou R&F Properties +7.3%, Sino-Ocean Group +3.4%
  • S&P/ASX 200 Index -0.7%
    • Fortescue Metals -6.8%, Rio Tinto -4.4%, BHP Billiton -4%
  • Kospi Index +0.9%
  • S&P BSE Sensex Index -0.6%
  • Straits Times Index -0.5%, FTSE Bursa Malaysia KLCI Index -0.3%, Jakarta Stock Exchange Composite Index -0.5%
    • Singapore stocks fall as GDP shrinks, MAS keeps neutral policy
    Before it's here, it's on the Bloomberg Terminal.
    LEARN MORE