June 16, 2017 8:57 pm JST

Nikkei Asia300 Index logs first weekly loss since April after Fed move

HONG KONG (Nikkei Markets) - Asian stocks outside of Japan posted their first weekly loss in eight weeks after the U.S. Federal Reserve raised interest rates and signaled another increase this year.

The Nikkei Asia300 Index ended unchanged at 1,238.76 Friday, but shed 1% for the week. Hong Kong's gauge led losses with a drop of 1.8% as developers in the city came under pressure after the Hong Kong Monetary Authority raised its policy interest rate by 0.25 percentage points Thursday, following the Fed's rate increase. Hang Lung Properties slid 7.1% this week, while New World Development and Henderson Land Development shed at least 3% each.

The U.S. central bank on Wednesday raised interest rates by 25 basis points, reiterated its outlook for another increase in 2017 and outlined plans to scale back its $4.5-trillion balance sheet. The increase was widely expected, but markets were hoping for a softer stance of future tightening as the world's largest economy contends with uncertainty about U.S. President Donald Trump's policies and mixed datasets.

"Financial markets were caught completely off guard during late trading on Wednesday after the Federal Reserve adopted a firmly hawkish stance and even displayed some optimism over economic growth despite mounting concerns over weak inflation," Lukman Otunuga, a research analyst at FXTM, wrote in a note.

Lenders and rate-sensitive developers in Singapore fell after the Fed's move as borrowing costs in the city state are largely determined by moves in U.S. interest rates. Singapore's central bank uses the exchange rate to guide monetary policy instead of interest rates.

United Overseas Bank fell 2.8% this week and DBS Group Holdings lost 1.3%. City Developments shed 3.1% this week, while UOL Group slid 0.8%. Singapore's gauge fell 0.8% during the week.

Malaysia's index was little changed as lenders advanced, with CIMB Group Holdings adding 1.5% and Malayan Banking climbing 0.6% for the week. Glovemaker Top Glove fell 4.1% this week after a more than 7% jump last week.

Regional technology stocks faltered after a selloff last Friday and on Monday on the technology-heavy Nasdaq Composite. South Korea's Naver fell 7% this week and Tencent Holdings shed 1.7% in Hong Kong. Personal computer maker Lenovo Group lost 1.8%.

Samsung Electronics, the heaviest weighted stock on the gauge, slipped 1.1% this week. The country gauge for South Korea fell 1%.

Energy producers in Asia were under pressure as Brent crude prices headed for their fourth consecutive weekly loss. China Petroleum & Chemical (Sinopec) and PetroChina fell at least 1.7% each in Hong Kong, while Sapura Energy lost 2.6% in Kuala Lumpur.

Chinese automaker Great Wall Motor Co was among the best performers on the 316-stock Nikkei Asia300 Index this week, rising more than 10% in Hong Kong.

Astro Malaysia Holdings rallied 5.1% in Kuala Lumpur amid expectations that a stronger ringgit will help it control costs on overseas content. Earlier this week, the television services provider reported a 3.1% decline in net profits for the fiscal first quarter.

Dongfeng Motor Group rose 9.9% in Hong Kong. Earlier this week, Dongfeng Automobile said it will transfer its stake in Zhengzhou Nissan to controlling shareholder Dongfeng Motor Company.

In Southeast Asia, the country gauges for Indonesia and Vietnam rose at least 1% this week, while Thailand's index advanced 0.8%. India's index fell 0.9% since last Friday.

--Nimesh Vora and V. Phani Kumar

Asia300

New World Development Co. Ltd.

Hong Kong

Market(Ticker): HKG(17)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 12,851.6M
Shares: 9,817.19M
Asia300

Hang Lung Properties Ltd.

Hong Kong

Market(Ticker): HKG(101)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 11,097M
Shares: 4,497.58M
Asia300

Henderson Land Development Co. Ltd.

Hong Kong

Market(Ticker): HKG(12)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 24,041.1M
Shares: 4,001.15M
Asia300

United Overseas Bank Ltd. (Singapore)

Singapore

Market(Ticker): SES(U11)
Sector:
Industry:
Finance
Regional Banks
Market cap(USD): 28,775.6M
Shares: 1,669.42M
Asia300

DBS Group Holdings Ltd.

Singapore

Market(Ticker): SES(D05)
Sector:
Industry:
Finance
Regional Banks
Market cap(USD): 38,524.3M
Shares: 2,562.05M
Asia300

City Developments Ltd.

Singapore

Market(Ticker): SES(C09)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 7,663.38M
Shares: 909.30M
Asia300

UOL Group Ltd.

Singapore

Market(Ticker): SES(U14)
Sector:
Industry:
Finance
Real Estate Development
Market cap(USD): 4,883.97M
Shares: 813.01M
Asia300

CIMB Group Holdings Bhd.

Malaysia

Market(Ticker): KLS(1023)
Sector:
Industry:
Finance
Regional Banks
Market cap(USD): 14,286.7M
Shares: 9,052.11M
Asia300

Malayan Banking Bhd.

Malaysia

Market(Ticker): KLS(1155)
Sector:
Industry:
Finance
Regional Banks
Market cap(USD): 23,803.9M
Shares: 10,570.1M
Asia300

Top Glove Corp. Bhd.

Malaysia

Market(Ticker): KLS(7113)
Sector:
Industry:
Health Technology
Medical Specialties
Market cap(USD): 1,663.34M
Shares: 1,256.14M
Asia300

Tencent Holdings Ltd.

China

Market(Ticker): HKG(700)
Sector:
Industry:
Technology Services
Internet Software/Services
Market cap(USD): 395,598M
Shares: 9,497.99M
Asia300

Samsung Electronics Co., Ltd.

South Korea

Market(Ticker): KRX(005930)
Sector:
Industry:
Electronic Technology
Telecommunications Equipment
Market cap(USD): 297,879M
Shares: 148.18M
Asia300

China Petroleum & Chemical Corp.

China

Market(Ticker): HKG(386)
Sector:
Industry:
Energy Minerals
Integrated Oil
Market cap(USD): 102,956M
Shares: 121,071M
Asia300

PetroChina Co., Ltd.

China

Market(Ticker): HKG(857)
Sector:
Industry:
Energy Minerals
Integrated Oil
Market cap(USD): 205,638M
Shares: 183,021M
Asia300

Great Wall Motor Co., Ltd.

China

Market(Ticker): HKG(2333)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 15,553.8M
Shares: 9,127.27M
Asia300

Astro Malaysia Holdings Bhd.

Malaysia

Market(Ticker): KLS(6399)
Sector:
Industry:
Consumer Services
Broadcasting
Market cap(USD): 3,230.52M
Shares: 5,209.52M
Asia300

Dongfeng Motor Group Co., Ltd.

China

Market(Ticker): HKG(489)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 11,004M
Shares: 8,616.12M

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