Asian
stocks fell, trimming the best two-month rally for the regional benchmark gauge
since the start of 2012, after the Federal Reserve fueled bets it may start
paring stimulus sooner than previously forecast.
Alacer
Gold Corp. sank 3.5 percent in Sydney as the price of the precious metal
declined. Honda Motor Co. (7267) lost 1.8 percent after Japan’s third-largest
carmaker reported second-quarter profit that missed analysts’ estimates amid
slowing motorcycle sales in Southeast Asia. National Australia Bank Ltd. (NAB)
retreated 2.3 percent as expenses climbed at the country’s largest lender by
assets.
The
MSCI Asia Pacific Index dropped 0.4 percent to 142.70 as of 9:37 a.m. in Hong
Kong, with eight of the 10 industry groups on the measure retreating. While the
Fed said fiscal policy is “restraining economic growth,” policy makers see
signs of “underlying strength.”
“Tapering
is inevitable, and that’s what you read from last night’s statement,” said
Donald Williams, Sydney-based chief investment officer at Platypus Asset
Management Ltd., which oversees about A$1.6 billion ($1.5 billion). “The timing
is still unsure, but the market is going to price in the likelihood of tapering
in the next six months at the latest.”
The
odds of the Fed starting to taper its stimulus in January rose to 45 percent
from 25 percent before yesterday’s statement, Citigroup Inc. said. Economists
surveyed by Bloomberg Oct. 17-18 predicted the Fed would begin paring stimulus
in March.
(Source: Bloomberg)
