Asian Stock Markets Finally Halt Unprecedented Winning Streak
Asian stocks pared their biggest monthly advance in six years and the dollar held gains against most peers after the Federal Reserve bolstered prospects for a December interest-rate increase. The yen climbed with Japanese bond yields after a surprise jump in industrial production.
The MSCI Asia Pacific Index fell for a third day, trimming its first monthly advance since April. U.S. futures slipped after the Fed’s commentary helped drive the Standard & Poor’s 500 Index to the highest close since Aug. 18.
South Korea’s won led losses among emerging-market currencies. The yen was stronger for the third time in four days after output unexpectedly exceeded all 32 estimates in a Bloomberg survey, curbing speculation that the Bank of Japan will expand stimulus this week.
Odds the Fed will move on rates at their next meeting jumped to 46 percent from around 32 percent a week ago, after the central bank dropped a reference to global risks and asserted that economic growth remains “moderate.”
Underlining the divergence of U.S. policy from the rest of the world, China cut rates for a sixth time in 12 months last week, while New Zealand’s central bank governor said today that another reduction in borrowing costs is likely and Sweden expanded its bond purchase program Wednesday.