ASIA STOCKS drop

Asian stocks fell, with the regional benchmark index paring its longest weekly winning streak since January. Japanese shares fell the most in six weeks ahead of the busiest week of earnings.

The MSCI Asia Pacific Index lost 0.7% to 135.12, with about two stocks dropping for each that rose. The measure has gained 0.2 percent this week, heading for a five-week advance. U.S. data showed mixed clues as to when the Federal Reserve may taper stimulus.

Of the 89 companies in the Asia-Pacific gauge that have posted quarterly results, 55% beat projections while 45% missed them.

 

Japan’s Topix index lost 2.9%, the biggest slump since June 13. About 690 companies including Toyota in the 1,710-member measure are scheduled to announce results next week.

 

South Korea’s Kospi Index, Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index all rose 0.1%.

 

Taiwan’s Taiex Index fell 0.2%, while Singapore’s Straits Times Index advanced 0.2%. Hong Kong’s Hang Seng Index (HSI) was little changed, erasing gains of as much as 0.6%.

 

China’s Shanghai Composite fell 0.5% after the government ordered more than 1,400 companies in 19 industries to cut excess production capacity this year, part of efforts to shift toward slower, more-sustainable economic growth. Steel, ferro alloys, electrolytic aluminum, copper smelting, cement and paper are among areas affected, the Ministry of Industry and Information Technology said in a statement yesterday.

 

Toyota Motor Corp. (7203) lost 3.6% as the Japanese carmaker said it was outsold by General Motors Co. for the first time in six quarters. Advantest Corp. slumped 9.7% in Tokyo after the chip-equipment maker posted a wider-than-expected quarterly loss. BBMG Corp. and Shandong Chenming Paper Holdings Ltd. slid in Hong Kong and mainland trading after they were cited by the Chinese government in a list of companies that must curb capacity this year.

 

 

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