Asian Equities Snap Four-Day Advance on Syria Concerns Asian stocks fell, with the benchmark regional index snapping a four-day advance, as the threat of a military strike against Syria drove up oil prices, curbing the outlook for global economic growth. The MSCI Asia Pacific Index lost 0.3 percent to 132.21 as of 9:01 a.m. in Tokyo. Markets in China and Hong Kong are yet to open. Japan’s Topix index slid 0.8 percent. Futures on the Standard & Poor’s 500 Index lost 0.1 percent. U.S. House of Representatives Speaker John Boehner backed President Barack Obama’s call for action against Syria, urging lawmakers to authorize a military strike. West Texas Intermediate crude oil traded at $108.50, close to the highest level in more than two years reached last week. “Markets don’t like wars occurring and are concerned about the intervention that could potentially occur in Syria,” James Lindsay, who helps oversee $21 billion as a fund manager in Auckland at Tyndall Investment Management Ltd., said by telephone. “We’re taking a little bit of risk off the table. Oil has held its ground and that’s not good for economic growth.” The MSCI Asia Pacific Index rose 2.5 percent this year through yesterday, while the S&P 500 surged 15 percent as investors pulled money from Asian and emerging markets amid concern the Federal Reserve will taper U.S. economic stimulus this month. The Asia-Pacific benchmark traded at 13 times estimated earnings yesterday, compared with 14.8 times for the S&P 500 and 13.8 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. Best Performer Japan’s Topix index climbed 34 percent in 2013 through yesterday, the best performing among 24 developed markets tracked by Bloomberg, amid optimism Prime Minister Shinzo Abe and the Bank of Japan can lead the country out of deflation with unprecedented monetary easing and regulatory reforms. Japanese shares could plunge at least 10 percent if Abe fails to carry through on a plan to raise a sales tax in April, according to 22 of 32 economists surveyed by Bloomberg News. China’s Shanghai Composite lost 6.4 percent this year through yesterday. President Xi Jinping said yesterday China’s slower economic growth this year was a conscious choice by the government to allow it to adjust the nation’s economic structure.
Posted on: Wed, 04 Sep 2013 10:14:37 +0000
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