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Aug. 20, 2013, 6:58 a.m. EDT

Asia stocks hit by fears about emerging markets

Japanese stocks suffer, alongside Indonesian and Thai equities

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian stocks tumbled Tuesday, led by a 3.2% drop in Indonesia, as worries that a reduction in the Federal Reserve’s bond purchases would hurt demand for emerging market assets slammed equities in both the region’s emerging and developed nations.

Several regional currencies weakened amid worries foreign investors were withdrawing funds from the region. The Indian rupee hit a fresh record low against the U.S. currency.

The sharp declines came amid rising yields on U.S. Treasurys and as investors looked ahead to the minutes of the Federal Open Market Committee’s last policy meeting, due Wednesday, for clues on the outlook of individual members of the central bank’s rate-setting board.


Shutterstock.com Enlarge Image
Equities in both Asia’s developing and developed nations are slammed by worries about emerging markets. (Pictured: Indonesia’s capital, Jakarta)

“Emerging markets are continuing to suffer from weaker sentiment in developed markets as investors are fearful that FOMC minutes later this week and the Jackson Hole meeting might result in Fed policy changes that will divert capital away from the emerging world,” said Dariusz Kowalczyk, a senior economist at Credit Agricole.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -3.34%  ended the day 2.6% lower, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.18% lost 1.6% and Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -1.60%  gave up 0.7%. Elsewhere, Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.27% shed 2.2% and China’s Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.60% declined 0.6%.

Indonesia’s JSX /zigman2/quotes/210597981/delayed ID:JAKIDX -0.34%  ended down 3.2%, recovering some of the day’s sharp losses. The index had plunged 5.6% on Monday.

Thailand’s SET /zigman2/quotes/210598047/delayed TH:SET +0.25%  was down 2% in late trading, while India’s S&P BSE Sensex /zigman2/quotes/210597966/delayed IN:1 -0.20%  traded 0.3% lower, also ahead of its close.

/zigman2/quotes/210597981/delayed JAKIDX 5,787.14, -19.91, -0.34%
/zigman2/quotes/210598047/delayed SET 1,439.10, +3.54, +0.25%
/zigman2/quotes/210598065/realtime DJIA 27,655.05, -305.75, -1.09%
One-month percentage changes
Indonesia's JSX index and Thailand's SET Vs. Dow Jones industrials

In currency trading, the U.S. dollar /zigman2/quotes/210562010/realtime/sampled USDINR -0.1960%  climbed to a record high of 64.12 Indian rupees during the session, before coming off highs to trade around 63.57 rupees.

The day’s losses came after the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.09% Monday moved lower to mark its longest losing streak of 2013. The decline came after the yield on the 10-year Treasury bond hit fresh two-year highs.

“Markets dislike uncertainty, and the U.S. [Federal Reserve’s] policy and rising yields are adding to other concerns for markets. Some guidance from the U.S. Fed would be welcomed, as its policy has not only distorted asset prices in the U.S., but all around the world,” said Perpetual head of investment market research Matthew Sherwood.

Stock movers

Resource-sector stocks lost ground across the region amid a rising U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.38% .

In Sydney, gold producer Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM -3.58% /zigman2/quotes/203286036/delayed NCMGY -1.62%  slid 2.9%, while diversified miner BHP Billiton Ltd. /zigman2/quotes/201448516/delayed AU:BHP -2.05% /zigman2/quotes/208108397/composite BHP -1.13%  fell 1.4%.

Elsewhere, Korea Zinc Co. /zigman2/quotes/202765860/delayed KR:010130 +0.35%  fell 4.9% in Seoul, Pacific Metals Co. /zigman2/quotes/209253802/delayed JP:5541 -5.00% /zigman2/quotes/203626509/delayed PFMTF 0.00%  lost 3.8% in Tokyo, and Jiangxi Copper Co. /zigman2/quotes/201668148/delayed HK:358 -0.64% /zigman2/quotes/201334192/delayed CN:600362 -2.15% /zigman2/quotes/204256025/delayed JIXAY -7.13%  gave up 2.8% in Shanghai and 4.4% in Hong Kong.

Among energy producers, Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 -4.63% /zigman2/quotes/206936121/delayed IPXHF +5.94% fell 3.2% in Tokyo, while PetroChina Co. /zigman2/quotes/204979431/delayed HK:857 -0.93%   /zigman2/quotes/206980083/delayed CN:601857 -1.70%   /zigman2/quotes/205108732/composite PTR -1.16%  dropped 3.7% in Hong Kong and 1.1% in Shanghai.

Click to Play

Markets starting to price in end of bond buying

Take a look at Monday’s market action on Wall Street, including three stocks to watch. Photo: Getty Images.

Shares of Everbright Securities Co. /zigman2/quotes/204851344/delayed CN:601788 +0.15% plunged by the day’s 10% limit as trading in the stock resumed for the first time since Friday, when a technical glitch at the broker led to a huge buy order that resulted in massive volatility in Shanghai. The company has said it has lost 194 million yuan ($31.7 million) from the glitch.

Meanwhile, Indonesian stocks skidded further amid worries that rising U.S. Treasury yields might encourage further fund outflows from the emerging markets.

In Jakarta, PT Bank Rakyat Indonesia ID:BBRI +0.22% slid 4.2%, and PT Bumi Resources ID:BUMI 0.00% tumbled 6.9%.

In Australia, QBE Insurance Group Ltd. /zigman2/quotes/207050271/delayed AU:QBE -1.49% /zigman2/quotes/201857553/delayed QBEIF +0.65%  tumbled 5.5% after reporting a lower profit and cutting its revenue outlook.

Coca-Cola Amatil Ltd. /zigman2/quotes/206709542/delayed AU:CCL -4.96%   /zigman2/quotes/206901048/delayed CCLAF 0.00% also retreated 5.5% after a price war cut into its first-half profit.

National Australia Bank Ltd. /zigman2/quotes/210431826/delayed AU:NAB -1.14%   /zigman2/quotes/208329321/delayed NABZY -0.57%  rose 0.7%, however, outperforming the broader market after a drop in non-performing loans helped raise its quarterly profit.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,605.41
-781.33 -3.34%
Volume: 0.00
Feb. 25, 2020 3:15p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,103.61
+24.57 +1.18%
Volume: 1.57M
Feb. 25, 2020 3:32p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,866.60
-111.70 -1.60%
Volume: 1.04M
Feb. 25, 2020 5:32p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,893.23
+72.35 +0.27%
Volume: 1.92M
Feb. 25, 2020 4:08p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,013.05
-18.18 -0.60%
Volume: 44.16B
Feb. 25, 2020 3:01p
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
5,787.14
-19.91 -0.34%
Volume: 0.00
Feb. 25, 2020 4:00p
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/zigman2/quotes/210598047/delayed
TH : Thailand Stock Exchange
1,439.10
+3.54 +0.25%
Volume: 4.47B
Feb. 25, 2020 5:08p
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/zigman2/quotes/210597966/delayed
IN : India: Bombay
40,281.20
-82.03 -0.20%
Volume: 0.00
Feb. 25, 2020 3:30p
loading...
/zigman2/quotes/210562010/realtime/sampled
US : Tullett Prebon
71.7940
-0.1410 -0.1960%
Volume: 0.0000
Feb. 25, 2020 11:32a
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,655.05
-305.75 -1.09%
Volume: 155.36M
Feb. 25, 2020 11:41a
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
98.98
-0.38 -0.38%
Volume: 0.00
Feb. 25, 2020 11:31a
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 29.09
-1.08 -3.58%
Volume: 5.12M
Feb. 25, 2020 4:10p
P/E Ratio
27.93
Dividend Yield
1.15%
Market Cap
$23.15 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203286036/delayed
US : U.S.: OTC
$ 19.44
-0.32 -1.62%
Volume: 30,860
Feb. 25, 2020 11:23a
P/E Ratio
26.74
Dividend Yield
1.00%
Market Cap
$15.32 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 36.33
-0.76 -2.05%
Volume: 8.33M
Feb. 25, 2020 4:10p
P/E Ratio
13.59
Dividend Yield
5.97%
Market Cap
$187.55 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 47.33
-0.54 -1.13%
Volume: 686,103
Feb. 25, 2020 11:41a
P/E Ratio
12.74
Dividend Yield
6.04%
Market Cap
$70.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202765860/delayed
KR : S. Korea: KRX
427,500
+1,500 +0.35%
Volume: 46,681
Feb. 25, 2020 3:30p
P/E Ratio
12.94
Dividend Yield
2.57%
Market Cap
₩7529.23 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209253802/delayed
JP : Japan: Tokyo
¥ 2,185.00
-115.00 -5.00%
Volume: 356,800
Feb. 25, 2020 3:00p
P/E Ratio
10.21
Dividend Yield
2.97%
Market Cap
¥44.86 billion
Rev. per Employee
¥103.77M
loading...
/zigman2/quotes/203626509/delayed
US : U.S.: OTC
$ 0.00
0.00 0.00%
Volume:
P/E Ratio
0.00
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/201668148/delayed
HK : Hong Kong
HK$ 9.34
-0.06 -0.64%
Volume: 3.70M
Feb. 25, 2020 4:08p
P/E Ratio
11.49
Dividend Yield
2.44%
Market Cap
HK$32.55 billion
Rev. per Employee
HK$12.12M
loading...
/zigman2/quotes/201334192/delayed
CN : China: Shanghai
¥ 14.55
-0.32 -2.15%
Volume: 42.07M
Feb. 25, 2020 3:00p
P/E Ratio
20.42
Dividend Yield
1.37%
Market Cap
¥51.49 billion
Rev. per Employee
¥10.12M
loading...
/zigman2/quotes/204256025/delayed
US : U.S.: OTC
$ 48.20
-3.70 -7.13%
Volume: 100.00
Feb. 25, 2020 10:25a
P/E Ratio
31.13
Dividend Yield
2.12%
Market Cap
$16.73 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 1,020.00
-49.50 -4.63%
Volume: 8.28M
Feb. 25, 2020 3:00p
P/E Ratio
9.48
Dividend Yield
3.53%
Market Cap
¥1561.68 billion
Rev. per Employee
¥291.81M
loading...
/zigman2/quotes/206936121/delayed
US : U.S.: OTC
$ 9.10
+0.51 +5.94%
Volume: 0.00
Feb. 20, 2020 5:20p
P/E Ratio
9.21
Dividend Yield
N/A
Market Cap
$13.29 billion
Rev. per Employee
$2.64M
loading...
/zigman2/quotes/204979431/delayed
HK : Hong Kong
HK$ 3.19
-0.03 -0.93%
Volume: 183.42M
Feb. 25, 2020 4:08p
P/E Ratio
12.24
Dividend Yield
4.94%
Market Cap
HK$589.33 billion
Rev. per Employee
HK$5.32M
loading...
/zigman2/quotes/206980083/delayed
CN : China: Shanghai
¥ 5.19
-0.09 -1.70%
Volume: 150.41M
Feb. 25, 2020 3:00p
P/E Ratio
22.75
Dividend Yield
3.23%
Market Cap
¥966.35 billion
Rev. per Employee
¥4.49M
loading...
/zigman2/quotes/205108732/composite
US : U.S.: NYSE
$ 40.75
-0.48 -1.16%
Volume: 68,698
Feb. 25, 2020 11:39a
P/E Ratio
9.41
Dividend Yield
4.15%
Market Cap
$8.70 billion
Rev. per Employee
$678,384
loading...
/zigman2/quotes/204851344/delayed
CN : China: Shanghai
¥ 13.01
+0.02 +0.15%
Volume: 48.99M
Feb. 25, 2020 3:00p
P/E Ratio
50.25
Dividend Yield
0.77%
Market Cap
¥59.89 billion
Rev. per Employee
¥1.03M
loading...
ID : Indonesia: Jakarta
Rp 4,500.00
+10.00 +0.22%
Volume: 113.93M
Feb. 25, 2020 12:00a
P/E Ratio
15.62
Dividend Yield
N/A
Market Cap
Rp549490.00 billion
Rev. per Employee
Rp2.19B
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ID : Indonesia: Jakarta
Rp 50.00
0.00 0.00%
Volume: 16.26M
Feb. 25, 2020 12:00a
P/E Ratio
2.52
Dividend Yield
N/A
Market Cap
Rp3354.19 billion
Rev. per Employee
Rp17.99B
loading...
/zigman2/quotes/207050271/delayed
AU : Australia: Sydney
$ 14.57
-0.22 -1.49%
Volume: 3.81M
Feb. 25, 2020 4:10p
P/E Ratio
23.73
Dividend Yield
4.25%
Market Cap
$19.31 billion
Rev. per Employee
$1.33M
loading...
/zigman2/quotes/201857553/delayed
US : U.S.: OTC
$ 9.35
+0.06 +0.65%
Volume: 0.00
Feb. 6, 2020 3:56p
P/E Ratio
21.68
Dividend Yield
N/A
Market Cap
$12.69 billion
Rev. per Employee
$990,122
loading...
/zigman2/quotes/206709542/delayed
AU : Australia: Sydney
$ 11.87
-0.62 -4.96%
Volume: 3.20M
Feb. 25, 2020 4:10p
P/E Ratio
22.95
Dividend Yield
4.30%
Market Cap
$9.23 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206901048/delayed
US : U.S.: OTC
$ 8.48
0.00 0.00%
Volume: 11.00
Feb. 20, 2020 2:12p
P/E Ratio
23.61
Dividend Yield
N/A
Market Cap
$6.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210431826/delayed
AU : Australia: Sydney
$ 26.80
-0.31 -1.14%
Volume: 9.37M
Feb. 25, 2020 4:10p
P/E Ratio
16.35
Dividend Yield
6.19%
Market Cap
$77.95 billion
Rev. per Employee
$1.00M
loading...
/zigman2/quotes/208329321/delayed
US : U.S.: OTC
$ 8.74
-0.05 -0.57%
Volume: 47,896
Feb. 25, 2020 11:22a
P/E Ratio
15.13
Dividend Yield
6.37%
Market Cap
$51.59 billion
Rev. per Employee
$761,598
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

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