Oct. 26 (Bloomberg) --
"Asian stocks fell, with the regional benchmark index erasing its gain for the month, and U.S. futures slid as China Unicom (Hong Kong) Ltd. and Apple Inc. joined companies posting results that missed analysts’ estimates. Metals rose and Japan’s yen climbed.
The MSCI Asia Pacific Index lost 0.9 percent as of 1:01 p.m. in Tokyo as Standard & Poor’s 500 Index futures fell 0.8 percent. Zinc contracts in London gained 0.3 percent to $1,840.5 a metric ton as nickel rose 0.2 percent. The yen climbed 0.2 percent against the dollar and China’s yuan touched the upper limit of its allowed trading band for a second day.
Apple, the world’s largest company by market value, announced yesterday forecasts on earnings that fell short of projections for the crucial holiday quarter. China Unicom, the country’s No. 2 mobile-phone carrier, was among 60 percent of companies on the Asia-Pacific gauge whose earnings have missed estimates. U.S. data today may show the world’s largest economy expanded 1.8 percent in the third quarter, for the first back- to-back readings below 2 percent since 2009.
“Economic data has been positive, but earnings as a whole has been disappointing,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “We’ve seen the worst in terms of economic growth downgrades, and the general economy is starting to improve from a low level. But we are still in the process of seeing the impact on earnings of that lower growth.”
Canon Inc., the world’s largest camera maker, slid 2.5 percent in Tokyo after it lowered its full-year profit and sales forecasts on slowing demand. Fanuc Corp., the largest maker of controls that run machine tools, fell the most in six months after reporting first-half profit that missed estimates.
Samsung, TSMC
A gauge of technology stocks fell 0.5 percent on the MSCI Asia Pacific Index, led by a 1.8 percent decline in Samsung Electronics Co. in Seoul. The company, both a rival and supplier to Apple, reported today third-quarter profit that beat analysts’ estimates. Samsung has the heaviest weighting among the 1,006 members of the Asia-Pacific index.
Taiwan Semiconductor Manufacturing Co. rose 2.8 percent, pacing gains on the regional benchmark after forecasting profit margins that also beat expectations.
Apple expected profit in the current period will be about $11.75 a share on sales of about $52 billion, the company said yesterday in a statement. That compares with $15.49 a share on sales of $55.1 billion according to the average of analysts’ estimates compiled by Bloomberg. Last quarter’s profit rose to $8.67 a share, shy of the $8.75 a share projected by analysts.
Nikkei 225
Japan’s Nikkei 225 Stock Average dropped 1.1 percent, extending declines after the government announced a further $9.4 billion stimulus package.
"Japan needs bigger stimulus as the economy is slowing faster than expected, but it will be hard to have larger spending due to political gridlock and worsening fiscal conditions,” said Yoshimasa Maruyama , chief economist at Itochu Corp. in Tokyo. “Political pressure will build on the BOJ.”
South Korea’s Kospi Index dropped 1.6 percent. Hong Kong’s Hang Seng Index declined 0.8 percent after yesterday capping the longest streak of gains since 2006. Markets in Indonesia, Malaysia, Singapore and the Philippines are closed for a holiday.
Industrial metals rallied following five days of losses in the London Metal Exchange Metals Index. Copper, aluminum and tin futures rose at least 0.3 percent.
Korea GDP
South Korea’s gross domestic product expanded 1.6 percent in the three months to September, the slowest pace since 2009, according to Bank of Korea data today. That compares with the median 1.7 percent estimate of 13 economists surveyed by Bloomberg News.
Japan’s consumer prices, excluding fresh food, fell 0.1 percent in September, the fifth month of decline, the statistics bureau reported today. The median of 27 estimates in a Bloomberg News survey was for a 0.2 percent drop.
The yen strengthened after touching a four-month low earlier, amid speculation the central bank will expand monetary easing next week. The currency was headed for a second weekly drop as a survey of economists showed the Bank of Japan will probably undertake additional measures when it meets Oct. 30.
Upper Limit
China’s yuan climbed to a 19-year high, with the advance exceeding the People’s Bank of China’s reference rate by the maximum allowed 1 percent. The daily fixing was raised 0.06 percent today to 6.3010 per dollar.
Benchmark U.S. 10-year notes yielded 1.81 percent, less than 1 basis point from yesterday’s close, before the U.S. GDP report later today. Treasuries were headed for a second weekly loss before the government report economists said will show consumer spending drove a pickup in growth.
The Thomson Reuters/University of Michigan final index of sentiment is also due today. The gauge jumped to 83 in October, the highest level since September 2007, according to a Bloomberg survey.
To contact Bloomberg News staff for this story: Chua Baizhen in Singapore at bchua14@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net "
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Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
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