ASIA STOCKS drop

Asian benchmark stock index fell for a second day as investors weighed corporate earnings and awaited U.S. economic data that may shed light on when the Federal Reserve will taper stimulus.

 

The MSCI Asia Pacific Index lost 0.7% to 136.03, with all 10 industry groups on the measure falling.

 

The MSCI measure gained 5.9% this year through yesterday with consumer discretionary shares rising the most and energy shares falling the most.

 

 

Japan’s Topix index slipped 1.4% and the Nikkei 225 Stock Average lost 1.1%. South Korea’s Kospi Index lost 0.1% even as data showed the nation’s economy grew the most in more than two years. Australia’s S&P/ASX 200 Index was little changed. New Zealand’s NZX 50 Index dropped 0.5% after the central bank kept its key interest rate at 2.5% today.

 

Hong Kong’s Hang Seng Index dropped 0.3% and China’s Shanghai Composite slid 0.4%. Taiwan’s Taiex Index fell 0.4%, while Singapore’s Straits Times Index declined 0.6%.

 

Of the 63 companies in the Asia-Pacific gauge that have posted quarterly results, 60% beat projections while 40% missed them, the data show.

 

Canon Inc. (7751), the world’s No. 1 camera maker, tumbled 5.4% in Tokyo after cutting its sales and profit forecast. Komatsu Ltd., Japan’s largest construction machinery maker, dropped 2.4% after U.S. bellwether Caterpillar Inc. lowered its earnings estimate.

 

Chinese rail shares gained after Premier Li said China will speed railway construction, especially in central and western regions. The State Council yesterday also approved tax breaks for small companies and reduced fees for exporters, according to a statement after a meeting led by Li.

 

China Railway Group Ltd., the country’s No. 2 train-line builder, jumped 3%. CSR Corp., the country’s biggest maker of rolling stock, gained 2.4%.

 

 

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