Asian stocks fluctuated as concern over the withdrawal of stimulus measures overshadowed Ford’s unexpected profit and a rally in gold prices.
The MSCI Asia Pacific excluding Japan Index swung between gains and losses at least six times and was little changed at 388.76 in Hong Kong around midday. The gauge has surged 90 per cent from a three-month low on March 2 on signs government stimulus measures will revive the global economy.
“We’re tending towards the view that we will see some relapse next year as people basically lose faith in governments’ ability to continue to come to the rescue,” said Peter Elston, a Singapore-based strategist at Aberdeen Asset Management.
Japanese markets are closed for a holiday. China’s Shanghai Composite Index climbed 1 per cent and Hong Kong’s Hang Seng Index lost 0.3 per cent, while South Korea’s Kospi Index dropped 0.2 per cent.
Futures on the U.S. Standard & Poor’s 500 Index added 0.2 per cent. The gauge advanced 0.7 per cent yesterday as the Institute for Supply Management’s factory index rose to a three- year high.
Investor concern about the withdrawal of stimulus policies and lower-than-estimated profits at companies from PetroChina to National Australia Bank have dragged the MSCI Asia Pacific Index, which includes Japan, down by 5 per cent from this year’s high on October 20.
The measure lost 1.3 per cent last month, the first drop since February. Stocks on the MSCI gauge trade at an average 22 times estimated profit, the lowest level since May 14, according to Bloomberg data.
“Further improvements in the economic and corporate news will help justify valuations,” said Jason Teh, who helps manage $US3.2 billion at Investors Mutual in Sydney. “A lot of stocks have had a good run, making it harder to find value in this market.”
In Seoul, Hyundai Motor rose 2.9 per cent to 105,000 won. The company controlled 4.4 per cent of the US auto market at the end of September, according to Autodata Corp. Kia Motors, which got 30 per cent of its revenue last year in North America, gained 2 per cent to 18,000 won.
Zijin Mining rose 3.4 per cent to $HK7.92 after gold futures in New York gained 1.2 per cent in after-hours trading.
Bloomberg