Technology and industrial stocks dragged Asian shares lower for a second day as investors await the Federal Reserve’s statement after its Wednesday meeting.
The MSCI Asia Pacific Index slipped 0.2 percent to 159.20 as of 4:48 p.m. in Hong Kong, with major gauges in the region trading in narrow ranges. Japan’s Topix fell 0.3 percent, while the Shanghai Composite Index closed 0.2 percent lower. Indian stocks hit yet another record as the NSE Nifty 50 Index briefly breached the record 10,000 mark amid better-than-expected earnings.
Asia’s equity benchmark is running into resistance near the highest level since 2007 after rallying for 10 straight days through Friday. Investors are awaiting the Federal Reserve’s statement for clues on how officials plan to start reducing the balance sheet with no changes to monetary policy expected when they meet Wednesday. The dollar was near the lowest since May 2016 against major peers.
“Investors are taking a pause as the market reaches a relatively high level,” said Linus Yip, Hong Kong-based strategist with First Shanghai Securities. “While the market may consolidate in the near term, a relatively weak dollar will provide support to Asian equities.”
South Korea’s Samsung Biologics Co. jumped 5.1 percent after it reported that its second-quarter sales rose 33 percent and as its latest Remicade biosimilar was launched. China Merchants Bank Co. surged 2.8 percent in Hong Kong to a two-year high, as its first-half profit beat estimates.
Newcrest Mining Ltd. climbed 4.1 percent after it was upgraded to hold at Ord Minnett. Sunac China Holdings Ltd. slumped 7.5 percent in Hong Kong after placing shares at an 8.8 percent discount to yesterday’s close. – Bloomberg