Asian stocks retreated from an almost one-year high as Japanese shares dropped after the yen rebounded and as commodity companies led losses across the region.
The MSCI Asia Pacific Index slipped 0.2 percent to 138.35 as of 9:02 a.m. in Tokyo after closing Tuesday at the highest since Aug. 11. Material and health-care shares fell the most on the regional benchmark gauge. Japan’s Topix index lost 0.5 percent, with exporters helping send the measure lower as the yen held a 0.6 percent gain against the dollar.
The index was little changed near an all-time high as declines in commodity shares and retailers offset gains in health-care and technology stocks spurred by corporate earnings. The Nasdaq Composite Index increased 0.2percent to a record for the second time in three sessions, and the Dow Jones Industrial Average added 3.76 points to 18,533.05. About 6 billion shares traded hands on U.S. exchanges, 14 percent below the three-month average.
Analysts have tempered their estimates for a decline in second-quarter net income to 2.7 percent, from a 5.8percent drop less than a month ago. Forecasts for the current quarter ending in September have turned negative, indicating a sixth straight period of falling profits, the longest since the financial crisis. Sliding earnings are causing valuations to jump, with the benchmark’s price-earnings ratio last month climbing above 20 for the first time since2009.
Reference: Bloomberg
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