Asian stocks fell amid shrinking volumes, with the regional index heading for its first annual drop since 2011. The yuan slipped to the weakest level since June, while oil climbed from a five-year low.
The MSCI Asia Pacific Index lost 0.4 percent at 11:32 a.m. in Tokyo, extending this year’s retreat to 2.5 percent. Trading on Japanese, Chinese and Korean bourses was at least 16 percent lower than the 30-day average. Standard & Poor’s 500 Index futures added 0.1 percent after the U.S. gauge rose to a record yesterday. The yuan weakened 0.1 percent against the dollar and headed for its biggest three-day retreat since March. Oil gained 0.3 percent in New York, paring this year’s drop to 45 percent.
The dollar-denominated Asia Pacific gauge has lagged behind equity rallies in the U.S. and Europe this year as the Dollar Index headed for its biggest annual retreat since 2008. Data this week is projected to show China’s official gauge of manufacturing industries fell to a more than two-year low in December.
Japan’s Topix lost 0.4 percent on the nation’s last day of trading for 2014, trimming its 2014 gain to 9 percent. Australia’s S&P/ASX 200 declined 0.6 percent while the Korean Kospi retreated 0.7 percent. China’s Shanghai Composite Index slipped 0.1 percent, paring this year’s advance to 50 percent.
The yuan fell 0.12 percent to 6.229 per dollar, extending its three-day drop to 0.51 percent, China Foreign Exchange Trade System prices show. The currency has retreated 2.8 percent against the greenback this year, headed for the first annual loss since 2009.
The euro slipped 0.1 percent $1.2136, the weakest level since August 2012. Three-year bond yields in Greece rose above 12 percent yesterday and the country’s stock gauge slid as much as 11 percent. Greek Prime Minister Antonis Samaras will ask for a general election to be held on Jan. 25, a few weeks before the nation’s 240 billion euro ($292 billion) bailout expires.