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Business News/ Market / Stock-market-news/  Asia stocks fall before fed on consumer shares; Geely plunges
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Asia stocks fall before fed on consumer shares; Geely plunges

Japan's Topix slid 0.1% after rising as much as 0.6%; Hong Kong's Hang Seng lost 0.4% and the Shanghai Composite added 1.3%

The MSCI Asia Pacific Index declined 0.5% to 133.72 as of 4:02 pm in Hong Kong after dropping 2% the previous two days. Photo: ReutersPremium
The MSCI Asia Pacific Index declined 0.5% to 133.72 as of 4:02 pm in Hong Kong after dropping 2% the previous two days. Photo: Reuters

Tokyo: Asian stocks fell for a third day before a Federal Reserve policy decision as consumer shares led the decline. Geely Automobile Holdings Ltd. plunged.

China Huishan Dairy Holdings Co. and Japan Tobacco Inc. fell the most among consumer-staple companies in the regional benchmark index after Goldman Sachs Group Inc. cut the ratings of the stocks. Chinese billionaire Li Shufu’s Geely Automobile sank 17% in Hong Kong as the company said it expects full-year profit to fall about 50% because of the slumping Russian currency and declining sales.

The MSCI Asia Pacific Index declined 0.5% to 133.72 as of 4:02 pm in Hong Kong after dropping 2% the previous two days. Russia’s currency plummeted to a record on Tuesday, defying a surprise interest-rate increase, while crude resumed declines on Wednesday. The Fed will drop a pledge to keep interest rates near zero for a “considerable time," according to economists.

“Focus now switches to the FOMC meeting, which has been pinned as a pivotal one," Stan Shamu, Melbourne-based market strategist at IG Ltd., wrote in a note. “The challenge will be how to proceed given the backdrop of turmoil in the rest of the world."

Japan’s Topix index slid 0.1% after rising as much as 0.6%. Exports in Japan rose less than economists predicted in November from the previous year, while imports unexpectedly declined. South Korea’s Kospi index fell 0.2%. Australia’s S&P/ASX 200 Index gained 0.2%, while New Zealand’s NZX 50 Index was little changed. Singapore’s Straits Times Index rose 0.2%.

Hong Kong’s Hang Seng Index lost 0.4% and the Hang Seng China Enterprises Index advanced 1.2%. The Hang Seng gauge entered a correction on Tuesdqay after extending a decline from a 3 September high to 10 %. The Shanghai Composite Index added 1.3% on Wednesday.

Russian ruble

The scope and speed of the ruble’s retreat indicate policy makers are losing control of the situation as a six-month tumble in oil robs President Vladimir Putin of the hard currency he needs to sustain an economy that’s faltering under the weight of international sanctions. The selloff in Moscow is prompting investors to pull money from other developing nations on concern about a global slowdown.

West Texas Intermediate (WTI) futures dropped 0.1% to $55.85 a barrel on Wednesday.

Futures on the Standard & Poor’s 500 Index added 0.5% on Wednesday. The underlying equity measure lost 0.9% on Wednesday as declines in technology shares overshadowed gains in oil producers. Russia’s economic crisis won’t stop the Fed from dropping its vow to keep rates low for longer, economists said, even as policy makers may acknowledge global risks have intensified. Bloomberg

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Published: 17 Dec 2014, 09:15 AM IST
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