Asian Stocks Fall for Fourth Day as Consumer Shares Drop

By Jonathan Burgos

Asia-Pacific stocks fell a fourth day, with the benchmark index heading for a three-week low, after the Standard & Poor’s 500 Index retreated from a record and as consumer shares slipped.
Calbee Inc., Japan’s largest seller of potato chips, dropped 2.4 percent. Newcrest Mining Ltd., Australia’s biggest gold producer, slid 1.9 percent after the price of bullion closed yesterday at a three-month low. Honda Motor Co. (7267), a carmaker that gets about 84 percent of sales abroad, added 1.1 percent as Japan’s currency touched an almost six-year low.
The MSCI Asia Pacific Index (MXAP) slipped 0.3 percent to 147.84 as of 11:40 a.m. in Tokyo, heading for its lowest close
since Aug. 14. The equity gauge rebounded 14 percent from a February low through yesterday amid signs the U.S. economy is strengthening and as China introduced stimulus. The S&P 500 Index retreated from an all-time high yesterday following a five-week rally.
“The market is taking its lead from the U.S.,” Daphne Roth, head of Asian equity research at ABN Amro Private Banking, which manages about $218 billion said by phone. “We’re seeing a temporary consolidation after the recent rally. Global economic growth is still on track. We’re still overweight on equities.”
New Zealand’s NZX 50 Index slipped 0.1 percent. The Jakarta Composite Index fell 0.2 percent, while the Philippine Stock Exchange Composite Index declined 0.5 percent. Taiwan’s Taiex index and Australia’s S&P/ASX 200 Index each rose 0.2 percent. The Shanghai Composite Index and Singapore’s Straits Times Index each added 0.1 percent. Markets in South Korea and Hong Kong are closed for a holiday.

Topix Gains

Japan’s Topix index climbed 0.2 percent, paring gains of as much as 0.5 percent, after the yen touched its lowest since October 2008. The measure is close to erasing this year’s losses.
“The weaker yen will steadily contribute to exporters’ earnings,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “We’re getting closer to an end to tapering and the raising of interest rates in the U.S., so this yen weakening is set to continue.”
While the Bank of Japan maintained an unprecedented level of stimulus as Asia’s second-largest economy weakened, the Federal Reserve has been winding back its stimulatory bond buying program this year and is due to report on the outlook for monetary policy next week.

Relative Value

The MSCI Asia Pacific Index traded at 13.7 times estimated earnings at the last close, compared with 16.7 for the Standard & Poor’s 500 Index and 15.5 for the Stoxx Europe 600 Index.
Futures on the S&P 500 fell 0.1 percent today. The U.S. equity benchmark gauge retreated 0.3 percent from an all-time high as declines in energy companies along with oil prices overshadowed a rally by Yahoo! Inc.
European Union governments abruptly put on hold for at least a “few days” new sanctions against Russia, allowing more time to assess the viability of a cease-fire in Ukraine without risking further trade retaliation by the Kremlin.
SoftBank Corp. extended its two-day gain to 6.2 percent after Alibaba Group Holding Ltd., in which the Tokyo-based phone carrier owns a stake, unveiled details of its initial share sale.