Asia stocks set for fourth weekly drop on global growth concern

SYDNEY (May 20): Asian stocks headed for its worst streak of weekly losses since September as investors assess what a US interest-rate increase as soon as next month will mean for global growth. Raw-material makers rebounded to lead gains on the regional benchmark index.

The MSCI Asia Pacific Index declined 0.1% to 125.17 as of 9.04am in Tokyo, extending this week’s slide to 0.4%. The gauge is on course for a fourth week of losses, the worst run since seven weeks of declines that ended in September. This week’s surge in expectations for higher US rates has dealt another blow to sentiment that was already brittle amid weaker-than-estimated earnings in Japan and disappointing economic data in China.

“Rate-hike concerns have continued to weigh on the equity markets,” said Angus Nicholson, Melbourne-based market analyst at IG Ltd. “Risk off sentiment looks set to dominate the open in Asia.”

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