WELLINGTON/HONG KONG — Asian stocks fell as Hong Kong shares headed for their biggest weekly drop since March amid continued pro-democracy protests.
The dollar rallied versus major peers, while Australian bonds fell with Treasuries and gold before the US reports monthly payrolls data.
The Hang Seng Index fell 1.1% by 11.09am in Tokyo, taking losses this week to 4.2% and dragging the MSCI Asia Pacific Index to a 0.2% decline. The Bloomberg Dollar Spot Index climbed 0.1% as the yen and New Zealand’s currency slipped at least 0.3%. Yields on 10-year Australian bonds added five basis points as Treasury rates rose a second day. Gold fell for the first time in three days. Standard & Poor’s 500 Index futures climbed 0.2%.
Markets in Hong Kong, where protesters are blockading streets to demand a greater choice in the city’s leadership, restart today after a two-day break during which $845 billion was erased from global equities.
Markets in mainland China, India and South Korea are closed for holidays. As investors assess the health of the US economy, analysts are predicting a return to gains of more than 200,000 in nonfarm payrolls. The European Central Bank shied from providing a definitive stimulus target yesterday.
“I don’t see any resolution” to the Hong Kong protests, said Francis Lun, the chief executive officer of Geo Securities Ltd. “Effects on retail and tourism industry will be devastating, and the protests are hurting the economy. Funds will be switching out from Hong Kong-related stocks to China-related ones.”
Hong Kong’s benchmark index has lost 10% from a high on Sept 3, meeting the common definition of having entered a correction. The number of shares changing hands was more than 150% higher than the 30-day average for the time of day, according to data compiled by Bloomberg.
China markets
The Hang Seng China Enterprises Index of mainland companies listed in the city slipped 0.6%. Mainland venues will reopen on Oct 8.
Hong Kong’s top official Leung Chun-ying agreed to a demand by student leaders for talks with his deputy, heading off their threats to escalate pro-democracy protests that have crippled some of the city’s busiest areas.
Japan’s Topix index climbed 0.1% after plunging 2.9% yesterday, the most since March 14. The yen slid 0.5% to 108.93 per dollar after surging 1.1% through the previous two days.
US employers probably added 215,000 workers to nonfarm payrolls in September, according to the median of 100 economists’ estimates compiled by Bloomberg. Payrolls rose by 142,000 people in August, the first increase of less than 200,000 since January and the smallest gain this year. The Federal Reserve, which is on track to announce the end of its bond-buying programme this month, is assessing whether the recovery in the world’s largest economy is strong enough to withstand higher interest rates.