Asia Stocks Drop as China Shares Fall; Copper Rebounds

Asian stocks outside Japan fell for a

fourth day before China’s leaders meet to map out economic

policies. European equity-index futures climbed as Australia’s

dollar weakened and copper snapped three days of losses.

The MSCI Asia Pacific Excluding Japan Index slid 0.2

percent by 7:14 a.m. in London, poised for the longest stretch

of losses in more than two months. Hong Kong’s Hang Seng Index

fell 0.4 percent and Taiwan’s benchmark equity measure slumped

1.1 percent. Euro Stoxx 50 futures rose 0.2 percent as Standard

Poor’s 500 Index contracts were little changed. Copper added

0.4 percent while natural gas declined for a fourth day.

Australia’s currency weakened 0.3 percent versus the dollar.

China’s leaders will meet in Beijing Nov. 9-12 to discuss a

blueprint for reform as the country heads for its slowest annual

growth in more than two decades. Australia’s central bank kept

its key rate at a record-low 2.5 percent today and said the

currency was still “uncomfortably high.” The U.S. Institute

for Supply Management issues its non-factory measure today.

“All eyes are on the third party plenum this weekend,”

Tim Moe, a Hong Kong-based strategist at Goldman Sachs Group

Inc., told Bloomberg Television. “The market has priced in a

fair amount of expectation about this and therefore from a

tactical standpoint, the market is vulnerable.”

Chinese Shares

The Shanghai Composite Index (SHCOMP) rose 0.4 percent, reversing

losses of 1.2 percent after agricultural companies rallied on

speculation the government will introduce reforms to bolster the

industry at the Communist Party meeting. Heilongjiang

Agriculture Co. and Zhongken Agricultural Resource Development

Co. jumped by the daily limit of 10 percent.

Industrial Bank Co. slid 2 percent as China’s banking

regulator urged lenders to handle credit risks in industries

with overcapacity problems. Poly Real Estate Group Co. declined

with developers after the 21st Century Business Herald reported

Beijing city won’t allow developers to increase home prices

before the year-end.

Japan’s Topix index ended little changed. Nissan Motor Co.,

Japan’s third-largest carmaker by market value, plunged 10

percent after cutting its net-income forecast. Komatsu Ltd., a

construction-equipment maker that gets about 80 percent of its

revenue outside Japan, lost 1.6 percent. The yen climbed 0.2

percent to 98.46 per dollar. Japan’s markets were closed

yesterday for a holiday.

Aussie Declines

Australia’s dollar, known as the Aussie, retreated to 94.81

U.S. cents. The currency gained 0.8 percent yesterday, the most

since Oct. 17, as data showed retail sales rose twice as fast as

economists estimated in September.

The Bloomberg U.S. Dollar Index, a gauge of the U.S.

currency against 10 major peers, was up 0.1 percent after

snapping its longest rally since May yesterday, dropping 0.3

percent. Ten-year Treasury yields were little changed at 2.6

percent after falling two basis points, or 0.02 percentage

point, in New York.

In the U.S., Federal Reserve Bank of Dallas President
Richard Fisher said yesterday the nation should resume normal

monetary policy as soon as possible. The Fed currently buys $85

billion a month of bonds to bolster the world’s largest economy

and damp borrowing costs.

The ISM non-manufacturing composite index for the U.S. will

drop to 54.0 for October from 54.4 the previous month, according

to a Bloomberg survey of economists.

A government report Nov. 7 is forecast by economists to

show the U.S. economy grew at a 2 percent annualized rate in the

third quarter, compared with a 2.5 percent increase in the

previous three months. Economists predict a report the next day

will show payrolls climbed by 120,000 in October and the
unemployment rate increased to 7.3 percent from 7.2 percent in

the previous month, according to a separate survey.

Copper climbed to $7,177 a metric ton. Zinc and aluminum

gained at least 0.3 percent each.

U.S. natural gas dropped amid forecasts for moderate

November temperatures that would limit demand for the heating

fuel. Gas futures fell 0.6 percent to $3.425 per million British

thermal units.

To contact the reporters on this story:

Pratish Narayanan in Singapore at

pnarayanan9@bloomberg.net;

Emma O’Brien in Wellington at

eobrien6@bloomberg.net

To contact the editor responsible for this story:

James Poole at

jpoole4@bloomberg.net

Enlarge image

Tokyo Stock Exchange

Kiyoshi Ota/Bloomberg

A visitor looks at an electronic board displaying stock figures at the Tokyo Stock Exchange (TSE) in Tokyo. Japan’s Topix Index climbed 0.5 percent.

A visitor looks at an electronic board displaying stock figures at the Tokyo Stock Exchange (TSE) in Tokyo. Japan’s Topix Index climbed 0.5 percent. Photographer: Kiyoshi Ota/Bloomberg

Nov. 5 (Bloomberg) — Mark Matthews, the head of Asia research at Bank Julius Baer, talks about Federal Reserve monetary policy and its implications for U.S. and Asian stocks.

He speaks from Singapore with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Nov. 5 (Bloomberg) — Sam Le Cornu, portfolio manager at Macquarie Investment Management, talks about China stocks and investment strategy for Asia.

He also discusses expectations for the third plenary session of the Communist Party Central Committee with Angie Lau and Rishaad Salamat on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)

Nov. 4 (Bloomberg) — Hans Goetti, Singapore-based chief investment officer for Asia at Finaport Investment Intelligence, talks about Japan’s economy, government policies and stock market.

Goetti also discusses the prospects for China’s economy and this week’s policy-making summit of the Communist Party leaders. He speaks with Rishaad Salamat and Angie Lau on Bloomberg Television’s “Asia Edge.” (Source: Bloomberg)

Nov. 1 (Bloomberg) — Pablo Goldberg, global head of emerging market research at HSBC Securities Inc., talks about the outlook for global markets and investment strategy.

He speaks with Angie Lau on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Oct. 30 (Bloomberg) — Michael Kurtz, Hong Kong-based chief global equity strategist at Nomura Holdings Inc., talks about Federal Reserve monetary policy and its implications for Asian stocks.

He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

Oct. 30 (Bloomberg) — Jiong Shao, head of China strategy at Macquarie Securities Ltd., talks about the business outlook for the nation’s internet companies, including Baidu Inc., and his investment strategy.

He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

Nov. 5 (Bloomberg) — Timothy Moe, chief Asia Pacific equity strategist at Goldman Sachs Group Inc., talks about China’s stocks and investment strategy.

Moe also discusses the yen and India’s economic outlook. He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.” (Source: Bloomberg)

Asia Stocks Drop as China Shares Fall; Copper Rebounds