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Wellington - Asian stocks fell with emerging-nation currencies and iron ore as Chinese brokerage shares extended declines amid a regulatory probe. The yuan rallied offshore and oil gained.
The Asian equity benchmark was on track for its sixth loss in seven months as Shanghai shares fell for a third day. Indonesia’s rupiah weakened with the Malaysian ringgit, while China’s yuan rallied in offshore markets before the International Monetary Fund decides on its reserve-currency status on Monday.
The euro headed for its worst month versus the dollar since March amid prospects policy makers will further boost stimulus this week.
A slate of key economic events this week include the European Central Bank (ECB) meeting, Federal Reserve chair Janet Yellen appearing before Congress and monthly payrolls data on Friday.
With the odds of a US interest-rate increase in December holding above 70%, the focus is shifting to policy divergence and how other central banks may respond to Fed policy tightening.
Chinese industrial companies slid before data on Tuesday that will signal no improvement in manufacturing. OPEC members also meet to discuss oil production this week.
“Concerns over slowing growth in China and some parts of global economy still persist and may last through the first half of 2016,” said Agus Yanuar, President Director at PT Samual Aset Manajemen in Jakarta.
“Investors should maintain defensive positions until we can see some improvements from leading indicators.”
Stocks
The MSCI Asia Pacific Index lost 0.9% as of 07:22, to bring its drop in November to 1.8%. Japan’s Topix index fell 0.8%, while the Kospi index in Seoul slipped 1.8%. Australia’s S&P/ASX 200 Index was down 0.7% after falling 1% in the five days to November 27.
The Shanghai Composite Index slid 2.6%, while the Hang Seng China Enterprises Index, a gauge of mainland stocks listed in Hong Kong, lost 0.8%. Carrying on from the Shanghai index’s 5.5% slide, the Deutsche X-trackers Harvest CSI 300 China A-Shares exchange-traded fund dropped 7.3% last session.
China’s Citic Securities, Haitong Securities and Guosen Securities are being probed for alleged breaches of rules on margin and short-selling contracts, according to exchange filings by the companies on Sunday.
Shares of Citic dropped 3.6% on Monday, while Haitong plunged by the 10% limit after being suspended on Friday. All three firms have said they will cooperate with the regulator and operate as normal.
A Brazilian stock ETF traded in Tokyo slipped 3.2% on Monday, dropping for a third day. Billionaire Andre Esteves renounced all his posts at Grupo BTG Pactual SA after he was jailed indefinitely, the bank said late on Sunday.
