Asian stocks fell from the highest level in three months as Softbank Group Corp. led a slump for phone companies and investors judged the rally spurred by a global equities recovery was overdone.
The MSCI Asia Pacific Index lost 0.2 percent to 133.62 as of 10:08 a.m. in Hong Kong, set to halt a six-day, 4.4 percent gain that sent valuations to near the highest level in almost a year. Softbank tumbled the most in three years in Tokyo after agreeing to buy U.K. based ARM Holdings Plc for $32 billion. A gauge of mainland Chinese shares traded in Hong Kong snapped the longest winning streak in more than a month and Korean shares declined for the first time in seven days.
“The market is taking a pause,” Tony Farnham, a strategist at Paterson Securities in Sydney, said by phone. “There isn’t much of a catalyst out there. People are starting to question if there’s still value in the market following the post-Brexit rally.”
The recent rally boosted the value of shares on MSCI Asia Pacific Index to 13.3 times its 12-month projected earnings, near the the most expensive level since August. Global equities recovered from a rout that wiped out more than $4 trillion in market value since June’s shock U.K. vote to leave the European Union amid expectations policy makers will boost growth. The S&P 500 Index closed at a record for the fifth time in six days, as investors shrugged off concerns over a thwarted coup attempt in Turkey.
“On current sentiment, it seems likely that any pullbacks will be shallow and a buying opportunity,” said Chris Weston, chief market strategist at IG Ltd. in Melbourne. “We will need to see good earnings, or the market is at risk of rolling over.”
Central banks remain in focus as New Zealand’s plan to curb speculation in the housing market boosted chances for an interest-rate cut, while a professor who has collaborated on research with Governor Haruhiko Kuroda said the Bank of Japan has no need to further increase monetary stimulus. The odds the Federal Reserve will tighten monetary policy this year remains low, with traders predicting 41 percent chance rates will rise in December.
Hong Kong’s Hang Seng Index slipped 0.7 percent, halting a six-day rally that brought the benchmark index to the highest close this year on Monday. The Hang Seng China Enterprises Index of mainland stocks traded in the city declined 1 percent, retreating from a three-month high. The Shanghai Composite Index lost 0.6 percent.
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The MSCI Asia Pacific Index lost 0.2 percent to 133.62 as of 10:08 a.m. in Hong Kong, set to halt a six-day, 4.4 percent gain that sent valuations to near the highest level in almost a year. Softbank tumbled the most in three years in Tokyo after agreeing to buy U.K. based ARM Holdings Plc for $32 billion. A gauge of mainland Chinese shares traded in Hong Kong snapped the longest winning streak in more than a month and Korean shares declined for the first time in seven days.
“The market is taking a pause,” Tony Farnham, a strategist at Paterson Securities in Sydney, said by phone. “There isn’t much of a catalyst out there. People are starting to question if there’s still value in the market following the post-Brexit rally.”
The recent rally boosted the value of shares on MSCI Asia Pacific Index to 13.3 times its 12-month projected earnings, near the the most expensive level since August. Global equities recovered from a rout that wiped out more than $4 trillion in market value since June’s shock U.K. vote to leave the European Union amid expectations policy makers will boost growth. The S&P 500 Index closed at a record for the fifth time in six days, as investors shrugged off concerns over a thwarted coup attempt in Turkey.
“On current sentiment, it seems likely that any pullbacks will be shallow and a buying opportunity,” said Chris Weston, chief market strategist at IG Ltd. in Melbourne. “We will need to see good earnings, or the market is at risk of rolling over.”
Central banks remain in focus as New Zealand’s plan to curb speculation in the housing market boosted chances for an interest-rate cut, while a professor who has collaborated on research with Governor Haruhiko Kuroda said the Bank of Japan has no need to further increase monetary stimulus. The odds the Federal Reserve will tighten monetary policy this year remains low, with traders predicting 41 percent chance rates will rise in December.
Hong Kong’s Hang Seng Index slipped 0.7 percent, halting a six-day rally that brought the benchmark index to the highest close this year on Monday. The Hang Seng China Enterprises Index of mainland stocks traded in the city declined 1 percent, retreating from a three-month high. The Shanghai Composite Index lost 0.6 percent.
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