“Asian stocks fell, extending a rout that wiped out about $400 billion from the value of global equities yesterday, amid concern that central banks from Tokyo to Washington are increasingly reluctant to add stimulus.
Toyota Motor Corp., the world’s largest carmaker, retreated 1.8 percent in Tokyo after the yen yesterday gained the most in three years. Hyundai Merchant Marine Co. (011200) plunged 15 percent in Seoul after North Korea called off talks yesterday on a joint industrial zone. Nomura Real Estate Master Fund Inc. (3285), Japan’s largest initial public offering this year, fell 6.2 percent in its debut.
The MSCI Asia Pacific Index was little changed at 131.65 as of 8:44 p.m. in Tokyo, with about two shares falling for each that advanced. Markets in China, Hong Kong, Taiwan and the Philippines were shut for holidays.
“There’s lots of confusion around the world at present about what central bank policy means for the outlook of the global economy, earnings and valuations,” Matthew Sherwood, Sydney-based head of market research at Perpetual Ltd., which manages about $25 billion, said by e-mail. “The Fed is likely to continue to be ambiguous about its next step, probably because it’s not sure. This will see markets continue to be volatile.”
The MSCI gauge fell 8.9 percent through yesterday from this year’s high on May 20 on speculation that an improving U.S. economy will lead the Federal Reserve to scale back record stimulus. In May, Fed Chairman Ben S. Bernanke said policy makers could reduce the pace of bond buying should there be sustained improvement in the U.S. economy….”
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