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| The dollar weakened against 15 of its 16 major counterparts and sank 0.5 percent to $1.3233 per euro. Photographer: Hannelore Foerster/Bloomberg |
Dec 28, 2010
Most Asian stocks declined and the dollar fell on concern China will further raise interest rates and before the release of U.S. data that may show that housing remains a weak link amid a strengthening economic recovery.
About three stocks slid for every two that rose on the MSCI Asia Pacific Index, which climbed 0.2 percent to 135.66 as of 5 p.m. in Tokyo. Benchmark indexes in Hong Kong and Shanghai dropped at least 0.9 percent. The Stoxx Europe 600 Index added 0.2 percent and futures on the Standard & Poor’s 500 Index gained 0.1 percent. The dollar weakened against 14 of its 16 major counterparts and sank 0.4 percent to $1.3213 per euro. Copper rallied as much as 0.6 percent to a record in New York.
The Shanghai Composite Index extended its longest losing streak since July after People’s Bank of China adviser Li Daokui said in a newspaper interview that adjustments in rates and reserve requirements are “very necessary” in 2011. Data today may show U.S. home prices fell in October while consumer confidence improved this month.
“The global economy is recovering, but as a backdrop there’s the China overheating concern because it’s still unable to be controlled,” said Danny Yan, a Hong Kong-based fund manager at Haitong International Asset Management, which oversees about $400 million.
China Resources Land Ltd. fell 3.3 percent, pacing a 0.9 percent decline in the Hang Seng Index as Hong Kong’s stock market reopened after a holiday. The Shanghai Composite sank 1.7 percent, adding to a 1.9 percent drop yesterday after the People’s Bank of China boosted its key one-year lending and deposit rates by 25 basis points over the weekend.
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