Hong Kong - Technology and industrial stocks dragged Asian shares lower for a second day as investors await the Federal Reserve’s statement after its Wednesday meeting.
The MSCI Asia Pacific Index slipped 0.2% to 159.20 as of 10:48, with major gauges in the region trading in narrow ranges.
Japan’s Topix fell 0.3%, while the Shanghai Composite Index closed 0.2% lower. Indian stocks hit yet another record as the NSE Nifty 50 Index briefly breached the record 10 000 mark amid better-than-expected earnings.
Asia’s equity benchmark is running into resistance near the highest level since 2007 after rallying for 10 straight days through Friday.
Investors are awaiting the Federal Reserve’s statement for clues on how officials plan to start reducing the balance sheet with no changes to monetary policy expected when they meet on Wednesday. The dollar was near the lowest since May 2016 against major peers.
“Investors are taking a pause as the market reaches a relatively high level,” said Linus Yip, Hong Kong-based strategist with First Shanghai Securities. “While the market may consolidate in the near term, a relatively weak dollar will provide support to Asian equities.”
South Korea’s Samsung Biologics jumped 5.1% after it reported that its second-quarter sales rose 33% and as its latest Remicade biosimilar was launched.
China Merchants Bank surged 2.8% in Hong Kong to a two-year high, as its first-half profit beat estimates.
Newcrest Mining climbed 4.1% after it was upgraded to hold at Ord Minnett. Sunac China slumped 7.5% in Hong Kong after placing shares at an 8.8% discount to yesterday’s close.
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