Asian Stocks Fall as China Shares Sink Into Bear Market
Bloomberg: Asian stocks fell as China’s Shanghai Composite Index slumped more than 20 percent from a February high, entering a so-called bear market, amid concern a cash crunch will curb growth in the world’s second-largest economy.
Jiangxi Copper Co. (358), China’s biggest producer of the metal, tumbled 5.3 percent in Hong Kong. Newcrest Mining Ltd. fell 2.4 percent after Australia’s No. 1 gold producer cut jobs at its Lihir mine in Papua New Guinea. Celltrion Inc. gained 2.2 percent after Singapore’s Temasek Holdings Pte. agreed to buy an extra 150 billion won ($129.7 million) of shares in the South Korean drug maker.
The MSCI Asia Pacific Index slipped 0.8 percent to 124.86 as of 12:36 p.m. in Tokyo, reversing earlier gains of 0.5 percent. Almost three shares fell for every two that rose on the measure. The gauge dropped 13 percent from this year’s high on May 20 through yesterday after Federal Reserve Chairman Ben S. Bernanke said last week the U.S. central bank may start dialing down its stimulus efforts if the economy achieves sustainable growth, and money market rates in China surged to record highs.
“Global markets are taking off risk and will continue to be jittery until interbank rates in China stabilize,” said Ichiro Yamada, general manager of equities who helps manage the equivalent of $3 billion in stocks at Fukoku Mutual Life Insurance in Tokyo. “Japanese shares are falling along with other markets, but it’s also the most resilient market because it benefits from a stronger dollar.”
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