(Bloomberg) -- Asian shares dropped for a third day, with materials companies tumbling, as the dollar rose ahead of Federal Reserve Chairman Jerome Powell's second congressional appearance this week on Thursday.
The MSCI Asia Pacific Index slid 0.7 percent to 176.08 as of 4:31 p.m. in Hong Kong, set to close at a two-week low. Japan's Topix fell 1.6 percent, the most since February 9. Markets in South Korea and Thailand were closed for a holiday. Concern about a faster pace of U.S. rate hikes weighed on equities, providing a good opportunity to buy at lower prices, said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd., who oversees about $120 billion.
“Markets seem to be keen to force Mr. Powell's hand into the FOMC meeting,” which will happen later this month, Naeimi said. “Another leg down in equities would be a great entry point in EM” stocks.
The Asian benchmark's material sub-gauge dropped 1.6 percent, the most among all industry groups. Sumitomo Metal Mining Co. slumped 4.4 percent in Tokyo, the most in three weeks. Australia's Orica Ltd. lost 3.5 percent after the company said it expects impairment charges of A$300 million ($232 million).
Chinese property shares offset some of the region's losses after research house CRIC forecast strong February home sales for large developers. Shimao Property Holdings Ltd. jumped 4.3 percent in Hong Kong.
Summary
- Nikkei 225 -1.6%
- Japanese Stocks Decline as Concern Over U.S. Rates Intensifies
- BOJ's Kataoka Urges More Stimulus, Says Tightening Long Way Off
- Hang Seng Index +0.7%, Hang Seng China Enterprises Index +0.4%, Shanghai Composite Index +0.4%
- Xi Set to Clear Final Hurdle in Push for Power to Reshape China
- S&P/ASX 200 -0.7%, New Zealand's S&P/NZX 50 -0.4%
- Sensex little changed, Nifty 50 +0.1%
- Modi's Cash Buildup Adds to Litany of India's Bond Market Woes
- Indian Technology Shares Fall as Sensex Index Little Changed
- Straits Times Index -0.1%, Malaysia's KLCI +0.2%, Jakarta Composite Index +0.1%, Philippine Stock Exchange PSEi Index -0.1%, Vietnam's VN Index -0.5%
- Indonesian Builders Rally Amid Pre-Election Infrastructure Drive
To contact the reporters on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net, Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie
©2018 Bloomberg L.P.
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