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Bangkok - Asian stocks dropped from the highest level in two years as material producers halted gains as the price of crude oil slipped. Noble slid to a 16-year low after S&P Global Ratings cut its credit rating.
The MSCI Asia Pacific Index slipped 0.2% to 151.93 as of 11:26. Australia’s main stock index fell 0.2% as BHP Billiton and Fortescue Metals led declines in commodity producers. Japan’s Topix Index lost 0.2% as the yen strengthened amid the latest reports on US President Donald Trump and his administration.
Tencent, China’s largest Internet company, slipped 0.1%, reversing an earlier gain of 1.9% and trimming its advance so far this year to 45%. The stock’s rally has helped drive Hong Kong’s benchmark index ahead of almost all global peers. Australia’s BHP Billiton and Fortescue Metals dropped more than 1.1%.
Political wrangling in Washington returned to the fore, taking the focus away from global economic growth, after the Washington Post reported that Trump asked intelligence chiefs to publicly deny any collusion between his campaign and Russia.
Oil halted its advance after a four-day gain before the Organisation of Petroleum Exporting Countries meets Thursday to decide on output.
“Most investors have much less enthusiasm toward the equity market with a lack of main catalysts,” said Komsorn Prakobphol, an investment analyst at Tisco Financial in Bangkok. “The wrangling noises in US politics should spur concern about a delay in implementing tax cuts and other economic policies, while oil prices may be bound for some correction after rallying.”
Noble plunged 28% in Singapore before shares were halted. S&P said the commodity trader could default on its debt over the next year as it spirals further into distress. S&P cut its long-term rating three notches to CCC+ before the company requested a trading halt on its stock pending an announcement.
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