Asia Stocks Slide as Korea Enters Correction, Japan Slumps - Yahoo Finance

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(Bloomberg) -- Asian stocks slipped, led by Japan and Korea, as surging commodity prices fueled concerns about global inflation.

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The MSCI Asia Pacific Index lost as much as 1.7% Tuesday in its third day of declines, with technology stocks contributing most to the weakness. South Korea’s Kospi entered a technical correction, while Japan’s Nikkei 225 extended losses from its recent peak to almost 10%.

Concerns about inflation have intensified the rout in Asian equities, with the regional benchmark down more than 2% this month. It plunged 5.2% in the three months through September, snapping a five-quarter winning streak. A gauge of commodities soared to an all-time high as a resurgence in demand for raw materials collides with supply constraints.

“The fact is that there is a lot of uncertainty about the strength of the economic rebound, inflation pressures, geopolitics, climate change, etc.,” Olivier d’Assier, head of APAC applied research at Qontigo GmbH, wrote in an email.

A gauge of global stocks has dropped more than 5% from a record in early September as Treasury yields rose ahead of a looming reduction in Federal Reserve stimulus. Concerns over China’s corporate crackdown and a slowdown in its economy also sapped sentiment.

“The economy isn’t back to normal and still faces pandemic-related restrictions in several places, but markets have behaved as if things were back to normal,” d’Assier wrote. “This correction is just a reality adjustment.”

SECTORS TO WATCH

Makers of Covid vaccines and treatments including SK Bioscience followed their global peers lower for a second day after Merck & Co. said its experimental Covid-19 pill cuts the risk of hospitalization and death in half
Indonesian mining companies extended this week’s rally, led by coal miner Bumi Resources and state-owned Timah, supported by high commodity prices
Korean travel, casino, airline and consumer retail stocks rallied, defying the market’s broader rout, on expectations consumer spending will improve as health authorities consider adopting a “living with Covid-19” policy later this month
Oil producers and refiners including Japan’s Inpex advanced as crude prices continued to jump, with OPEC+ agreeing to maintain gradual production increases

MARKETS AT A GLANCE

MSCI Asia Pacific Index down 0.7%
Japan’s Topix index down 1.3%; Nikkei 225 down 2.2%
Hong Kong’s Hang Seng Index up 0.3%; Hang Seng China Enterprises down 0.1%
Taiwan’s Taiex index up 0.3%
South Korea’s Kospi index down 1.9%; Kospi 200 down 1.7%
Australia’s S&P/ASX 200 down 0.4%; New Zealand’s S&P/NZX 50 down 1%
India’s S&P BSE Sensex Index up 0.4%; NSE Nifty 50 up 0.4%
Singapore’s Straits Times Index down 0.8%; Malaysia’s KLCI up 0.3%; Philippine Stock Exchange Index up 0.3%; Jakarta Composite down 0.9%; Thailand’s SET up 0.6%; Vietnam’s VN Index up 1.1%

ADVANCERS

Redbubble jumped 7.2% to its highest level since Sept. 28 after Morgan Stanley initiated coverage of the art products distributor with an overweight rating
Japanese insurer T&D Holdings added 1.6% after Morgan Stanley raised its rating on the stock to overweight from underweight, and upgraded its view on the industry to attractive from in-line

DECLINERS

Fast Retailing fell 6.9%, the most since March 2020, after reporting Japanese Uniqlo same-store sales for Sept. fell 19% y/y
Chinasoft International dropped 9.7%, the most since Aug. 17, after the software company agreed to sell as many as 162m new shares at HK$12.26 apiece in a placement
Nagaileben, a maker of clothing for the medical industry, lost 8.4%, the most since December 2018, after forecasting a decline in operating profit

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Asia Stocks Slide as Korea Enters Correction, Japan Slumps - Yahoo Finance

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