Asian Stocks Slump on Fed Cuts to Bond Buying, China PMI

Asian stocks fell for the fifth time in six days after the Federal Reserve pressed on with cuts to U.S. economic stimulus and as a report showed China’s manufacturing industry contracted.

Honda Motor Co., which gets 83 percent of its auto sales abroad, declined 2.1 percent as Japanese exporters retreated after the yen strengthened. Treasury Wine Estates Ltd. (TWE) slumped by a record 18 percent in Sydney as the world’s second-largest publicly traded wine maker said first-half earnings fell. Hitachi Metals Ltd. surged 4.6 percent after profit at the Japanese steel manufacturer topped analyst estimates.

The MSCI Asia Pacific Index lost 1.8 percent to 134.33 as of 9:56 a.m. in Hong Kong, with all 10 industry groups on the gauge falling. The measure has dropped 5 percent in January, on course for the biggest monthly slump since May as part of a global equities rout sparked by weaker-than-expected economic data from China and a sell-off in emerging-market currencies.

(Source: bloomberg)              

U.S. Stocks Fall as Best Buy, Citigroup Drop Amid Results

U.S. stocks fell, after the Standard & Poor’s 500 Index closed at a record yesterday, as Best Buy (BBY) Co. tumbled and earnings at companies from Citigroup Inc. to CSX Corp. (CSX) disappointed investors.

Best Buy slumped 29 percent after reporting a drop in U.S. same-store sales during the holiday shopping season. Citigroup and Goldman Sachs Group Inc. led declines among banks after releasing fourth-quarter results. CSX dropped 6.8 percent as profit missed analysts’ forecasts for the first time in two years. Intel Corp. slid 2.6 percent in extended trading after forecasting sales that may fall short of some estimates.

The S&P 500 lost 0.1 percent to 1,845.89 at 4 p.m. in New York, dragging the gauge lower for the year. The Dow Jones Industrial Average fell 64.93 points, or 0.4 percent, to 16,417.01. About 6.3 billion shares changed hands on U.S. exchanges, 4.4 percent above the 30-day average.

The S&P 500 gained 0.5 percent yesterday, briefly erasing its losses for 2014, as the World Bank raised its global-growth forecast and better-than-estimated earnings from Bank of America Corp. fueled a rally in financial shares. The benchmark measure trades at 15.6 times the estimated earnings of its members, more than the five-year average multiple of 14.1, data compiled by Bloomberg show.

(Source: Bloomberg)

U.S. Stocks Rise as Jobs Data Fuels Optimism of Stimulus

U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for the week, as a weaker-than-estimated jobs report eased concern that the Federal Reserve may accelerate the pace of stimulus cuts.

Companies that pay the highest dividends such as utility and phone stocks advanced as bond yields slipped, boosting the allure of equity income. Alcoa Inc. (AA) dropped 5.4 percent after profit missed estimates. 

Sears Holdings Corp. plunged 14 percent as it forecast a fourth-quarter loss and said sales during the holiday period dropped. Chevron Corp. slid 1.9 percent after saying earnings suffered as energy output declined.

The S&P 500 rose 0.2 percent to 1,842.37 at 4 p.m. in New York, after falling as much as 0.3 percent earlier in the day. The benchmark index added 0.6 this week, paring its drop in 2014 to 0.3 percent. The gauge climbed 30 percent last year, the most since 1997. The Dow Jones Industrial Average dropped 7.71 points, or 0.1 percent, to 16,437.05. About 6.6 billion shares changed hands on U.S. exchanges, 8.8 percent above the three-month average.

(Source: Bloomberg)

Asian Stocks Fall Before U.S. Payrolls, China Trade Data

Asian stocks fell, with the regional benchmark index extending its weekly loss, as investors await reports on Chinese trade and U.S. payrolls.

Rio Tinto Group and BHP Billiton Ltd., Australia’s biggest shippers of iron-ore to China, fell at least 1.8 percent. Mitsubishi Materials Corp., which processes metals, dropped 1.9 percent in Tokyo as it plans to halt a plant after an explosion. Dainippon Sumitomo Pharma Co., which has the Japanese distribution rights for a liver-disease drug developed by Intercept Pharmaceuticals Inc., soared 12 percent after a clinical trial proved successful.

The MSCI Asia Pacific Index slipped 0.3 percent to 138.57 as of 10:53 a.m. in Tokyo, on course for a 1.2 percent loss this week. About five stocks fell for every three that rose on the index. A U.S. Labor Department report today is projected to show American employers added more jobs in 2013 than at any point in the past eight years. Growth in Chinese exports and imports probably slowed last month, according to economists.

(Source: Bloomberg)

Asian Stocks Snap Four-Day Loss as IMF to Raise Forecast

Asian stocks rose, with the regional benchmark gauge on course for the first gain in five days, as the International Monetary Fund said it will raise its global economic growth forecast and the U.S. trade deficit narrowed.

Seven & I Holdings Co. jumped 4.5 percent in Tokyo after the supermarket chain’s operating profit beat analyst estimates. China Oilfield Services Ltd., a unit of the nation’s biggest offshore energy company, gained 1.3 percent in Hong Kong after saying it plans to raise HK$5.88 billion ($758 million) through a private sale of new shares. Nintendo Co., the maker of Wii U game consoles, jumped 7 percent in Tokyo after China lifted a 13-year ban on gaming machines.

The MSCI Asia Pacific Index advanced 0.6 percent to 139.28 as of 10:47 a.m. in Tokyo after closing yesterday at the lowest level since Dec. 19. More than three stocks rose for each that fell on the measure.

Japan’s Topix (TPX) index gained 1 percent. South Korea’s Kospi index and Australia’s S&P/ASX 200 Index were little changed, while New Zealand’s NZX 50 Index gained 0.4 percent.

Hong Kong’s Hang Seng Index (HSI) increased 0.6 percent and the Hang Seng China Enterprises Index of mainland shares traded in the city, also known as the H-share index, added 0.2 percent. China’s Shanghai Composite Index rose 0.3 percent.

(Source: Bloomberg)