(Bloomberg) -- Asian shares fell, posting a second consecutive day of declines, after North Korea's nuclear test on Sunday rattled global equity markets.
The MSCI Asia Pacific Index fell 0.1 percent to 160.04 as of 4:31 p.m. in Hong Kong. For every two stocks that dropped, one rose. Japan's Topix slid 0.8 percent as declines in telecommunication companies' shares offset automakers' gains. Hong Kong's Hang Seng Index closed less than 0.1 percent higher, snapping a three-day losing streak.
Asian investors are gauging geopolitical tensions and room for further equity gains following a world-leading rally. The region's benchmark has surged about 19 percent this year, outpacing an 11 percent gain for the S&P 500 Index.
"Geopolitical risks are prompting investors to take profits after an impressive rally this year," said Linus Yip, Hong Kong-based strategist at First Shanghai Securities. "While a war looks unlikely, profit-taking limits the short-term upside."
U.S. President Donald Trump agreed to support billions of dollars in new weapons sales to South Korea after North Korea's largest nuclear test. The U.S. ambassador to the United Nations said North Korea was "begging for war" at a UN Security Council meeting.
China's August composite purchasing managers' index rose to 52.4, the highest since February, according to data released today by Caixin Media and Markit Economics.
Hana Financial Group Inc. dropped 5.6 percent in Seoul, its biggest decline in more than a year, while Sharp Corp. slumped 5.9 percent to a seven-month low in Tokyo.
Semiconductor Manufacturing International Corp. surged 12 percent in Hong Kong, the most since November 2015. Sunac China Holdings Ltd. jumped 7.7 percent to a record high after Morgan Stanley raised target prices.
Summary
- Topix index -0.8%, Nikkei 225 -0.6%
- Hang Seng Index little changed, Taiwan's Taiex +0.5%, Shanghai Composite Index +0.1%
- CIFI Holdings Jumps Most in a Month After August Sales Increase
- Kospi -0.1%, Kospi 200 little changed
- Pyongyang's Threats Start to Show in South Korea's Economy
- Sensex Index +0.2%, Nifty 50 +0.2%
- India's Sensex Advances as Energy Companies, Metalmakers Rise
- Straits Times Index +0.7%, Jakarta Composite little changed, Thailand's SET +0.2%, Philippines PSEi Index +0.2%, Vietnam VN-Index +0.5%, FTSE Bursa Malaysia KLCI -0.3%
- Philippine Airlines Plans to Decrease Authorized Capital
- Singaporeans, in Age of ePayments, Still Love Cash: Chart
To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
