Asian stocks joined a global selloff amid concern that U.S. policy makers will next month end an unprecedented era of record-low borrowing costs, and as investors awaited a Chinese inflation report. Material and technology shares led declines.
The MSCI Asia Pacific Index dropped 0.4 percent to 133.16 as of 9:00 a.m. in Tokyo as Japan’s Topix index slid from an 11-week high. The Standard & Poor’s 500 Index retreated 1 percent on Monday as investors confronted the increased likelihood the Federal Reserve will boost interest rates this year. For Asian asset managers, the prospect of tighter U.S. policy is compounding concern about the growth outlook as China’s expansion slows. Producer prices in Asia’s biggest economy fell for a 44th month in October and consumer inflation decelerated, according to economist estimates before a report Tuesday.
The Topix fell 0.8 percent in Tokyo, while South Korea’s Kospi index lost 0.5 percent. New Zealand’s S&P NZX 50 Index slid 0.7 percent. Australia’s S&P/ASX 200 Index dropped 1.2 percent. Markets in China and Hong Kong have yet to start trading, while those in Singapore and Malaysia are closed for a holiday.
Source : Bloomberg