Sept. 11 (Bloomberg) — Asian stocks snapped a three-day advance, while metals and oil fell as concerns grew Europe will fail to contain its debt crisis and China’s economic slowdown is deepening.The MSCI Asia Pacific Index declined 0.6 per cent as of 11:08 a.m. in Tokyo. Standard & Poor’s 500 Index futures lost 0.1 per cent after the gauge yesterday retreated from a four-year high. Oil dropped 0.3 per cent from the highest level in almost three weeks. Zinc in London slumped 1.9 per cent after a seven- day climb, while nickel, aluminium and copper also slid. Japan’s yen gained against 11 of 16 major peers.
Germany’s Federal Constitutional Court is due to rule tomorrow on the country’s participation in a European rescue fund, while Greek politicians meet amid an impasse on spending cuts needed for a bailout. Investors are also waiting to see if the Federal Reserve will take steps to boost the economy at a meeting this week. Macquarie Group Ltd. cut its forecasts for China’s economic growth, while the nation’s car sales missed estimates for a second month in August.
“Concern about Europe’s debt crisis is casting a shadow at a time when investors can’t be confident about the global economy,” said Tomomi Yamashita, a senior fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6.3 billion. “This is not an easy environment to take risks.”
Three stocks fell for each one that rose today in the MSCI Asia Pacific Index. The gauge had its biggest gain this year on Sept. 7 after European Central Bank President Mario Draghi said policy makers agreed to a bond-purchase program as they try to regain control of interest rates in the euro area.
The Federal Open Market Committee will start a two-day policy meeting on Sept. 12 amid speculation it will introduce a third round of asset purchases. Fed Chairman Ben S. Bernanke said on Aug. 31 that the weak jobs market was a “grave concern.” A gauge of market expectations for additional stimulus rose to 99 per cent in August, the highest ever, according to Citigroup Inc.
–With assistance from Yoshiaki Nohara in Tokyo. Editor: Darren Boey
To contact the reporters on this story: Jason Clenfield in Tokyo at [email protected]; Kana Nishizawa in Hong Kong at [email protected]
To contact the editor responsible for this story: Darren Boey at [email protected]
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