Asian stocks fell, with the regional index heading for the steepest one-day drop in two months, as global equities drop amid concern valuations are too high. The yuan gained to a three-month high and copper fluctuated after Chinese inflation data came in close to economists’ estimates.
The MSCI Asia Pacific Index lost 0.7 percent by 11:21 a.m. in Tokyo, as all major benchmark indexes in the region retreated. Hong Kong’s Hang Seng Index slid 1.4 percent and a measure of Chinese shares in the city fell 1.2 percent. Standard & Poor’s 500 Index futures were little changed. The yuan rose to 6.1955 per dollar. Copper swung between gains and losses as zinc declined from a 35-month high.
Consumer-price inflation in China slowed last month, data today showed, while factory gate prices fell at the lowest pace in more than two years. Indonesians vote for a new president today. Global equities are retreating after total world market capitalization hit a record $66 trillion last week. Internet stocks including Twitter Inc. drove U.S. declines yesterday on concern they have risen too far too fast, while minutes of the Federal Reserve’s June meeting are due today.