Asian Stocks Snap 3-Day Gain Before Summit

Asian stocks declined for the first time in four days, oil retreated from a 12-week high and bond risk climbed before European leaders gather to devise a plan to fight the region’s sovereign-debt crisis. The Australian dollar weakened after inflation slowed.
The MSCI Asia Pacific Index lost 0.8 percent at 10:52 a.m. in Tokyo.discount jerseys Standard & Poor’s 500 Index futures added 0.2 percent after the gauge’s 2 percent drop yesterday. Oil lost 0.4 percent in New York and gold gained for a fourth day. The euro traded at $1.3924 from $1.3908, the Aussie sank 0.5 percent to $1.0375, and the yen was little changed at 76.03 per dollar, after climbing yesterday to a record 75.74. The Markit iTraxx Asia index of debt default risk increased eight basis points.
European leaders are holding the 14th crisis summit in 21 months to discuss Greece’s second bailout, the recapitalization of banks and strengthening the 440 billion-euro ($612 billion) rescue fund into a more potent weapon. A finance ministers’ meeting originally scheduled to precede the nfl jerseys cheap summit was canceled, with officials now set to gather at an as-yet undetermined time to complete the plan’s main elements.
“Europe is still the biggest single cause of uncertainty and fear in the market,” Stephen Wood, who helps oversee about $163 billion as the New York-based chief market strategist for Russell Investments, said in a Bloomberg Television interview. “It’s not terribly optimistic that we’re in the hands of bureaucrats and politicians right now.”
More than four shares declined for every one that gained on MSCI’s jerseys wholesale Asia Pacific Index, which closed yesterday at the highest level since Sept. 16. Japan’s Nikkei 225 Stock Average slid 0.8 percent, South Korea’s Kospi Index lost 0.6 percent and Taiwan’s Taiex Index retreated 0.4 percent.
Kao, AU Optronics
Kao Corp. decreased 4.9 percent in Tokyo after the cosmetics maker reported first-half net income that missed its forecast. AU Optronics Corp. (2409) dropped 4 percent in Taipei after the maker of liquid crystal displays reported a quarterly loss that was wider than analyst estimates. E Ink Holdings Inc., a supplier to Amazon.com Inc., dropped 4.6 percent.
The S&P 500 fell yesterday for the first time in four days after United steelers jerseys cheap Parcel Service Inc. said declining shipments from Asia to the U.S. curbed growth in its international business and 3M Co. cut its profit forecast. Amazon.com tumbled in extended trading as earnings missed analysts’ projections.
Data yesterday showed consumer confidence unexpectedly slumped in October to the lowest level since March 2009 and home prices in 20 U.S. cities dropped more than forecast in August.
U.S. Economy
Economic reports today may show orders for durable goods excluding transportation equipment rose and new home sales increased, before Commerce Department data tomorrow that’s forecast to show gross domestic product rose at a faster pace in the third quarter. Treasury 10-year yields climbed one basis point to 2.12 percent.
The euro was little changed at 105.82 yen before the summit, which willcheap jerseys cap six days of haggling among the region’s central bankers and leaders. German Chancellor Angela Merkel is due to address lower-house lawmakers on the crisis at about noon in Berlin today before the government puts plans to bulk up the 440 billion-euro ($612 billion) rescue fund to a vote.
The yen was about 0.5 percent from its post-World War II record after Finance Minister Jun Azumi said today his ministry will take “decisive” measures to stem the yen’s rise and won’t rule out any steps to deal with the situation.
Bank of Japan policy makers will discuss more monetary easing at a two-day meeting beginning tomorrow, the Nikkei reported. Measures to mitigate the impact of the strong yen on the Japanese economy may include expanding a 50 trillion yen ($660 billion) asset purchase program by 5 trillion yen and purchasing bonds with maturities longer than two years, the newspaper reported without citing anyone.
Slower Inflation
The Australian dollar weakened against all 16 most actively traded counterparts after the Bureau of Statistics said the nation’s consumer price index rose 0.6 percent in the third quarter from the previous three months, when it gained 0.9 percent.
The cost of insuring Asia-Pacific corporate and sovereign bonds against non-payment climbed, with the Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan climbing to 205, Credit Agricole SA prices show. That’s set to be the highest level since Oct. 20, according to data provider CMA.
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Oil dropped 0.4 percent to $92.79 a barrel in New York, the first decline in four days, after yesterday gaining 2.1 percent to the highest settlement since Aug. 2. Crude stockpiles rose 2.71 million barrels last week in the U.S., the world’s biggest consumer of the commodity, according to the American Petroleum Institute. An Energy Department report today may show supplies increased 1.48 million barrels.