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Asian Shares Slip As Fed Tapering Worries Overshadow China Data
By: MT Newswires
Asian stocks eased as Federal Reserve tapering worries overshadowed upbeat data out of China.
A non-manufacturing Purchasing Managers' Index in China rose to 56.3, the highest level this year in October, a government report showed.
However, sentiment soured after Dallas Federal Reserve President Richard Fisher suggested a rollback of the Fed's stimulus could come sooner than expected, while speaking at a business lunch in Sydney. In response to questions, he said that the risk of a "fiscal blowup" wasn't part of the Fed's September decision to leave its stimulus untouched, and nor would it be a consideration in the future, the WSJ reports. He also reportedly said fiscal risks shouldn't stop the Fed from doing what is right for the economy.
Meanwhile, Australian retail sales rose a seasonally adjusted 0.8% during September, the statistics bureau said. The result marked an improvement from August's 0.5% increase and beat expectations for a 0.3% gain from a survey of economists by Reuters and a 0.4% projected rise from a separate Dow Jones Newswires poll.
Thai stocks fell amid political tensions over an amnesty bill, with thousands of protesters hitting the streets in Bangkok. The bill could clear corruption charges against former Prime Minister Thaksin Shinawatra.
Chinese real-estate developers fell after the China Securities Journal reported that a property bubble poses danger to the economy and that property controls should be combined with land and tax policy reform to reduce risk.
Japan was closed for a holiday.
In ADR news, Woori Finance Holdings ( WF ) missed Q3 expectations. It reported operating profits declined an annual 77.5%.
HSBC ( HBC ) reported Q3 profit of $5.1 billion
The Hang Seng ended down 0.26% at 23,189.62 and the Shanghai composite index flat at 2,149.63.