24.02.201406:14:54UTC+00Asian stocks dive as regional gauge caps two-week gain

Asian shares plunged following the benchmark regional index reported two straight weekly gains, as Group of 20 finance heads backed obliging monetary policy and China's central bank signaled country's economy can uphold growth of 7% to 8%.

The MSCI Asia Pacific Index missed 0.1% to 137.30 as of 9:03 a.m. in Tokyo, before Hong Kong and China markets open. Stimulus steps from Japan to the US that assisted accrue more than $7 trillion to the global shares value last year should be intact for now, G-20 finance ministers and central bank chiefs said yesterday. 

They sworn to elevate pooled gross domestic product by more than 2% over the trajectory implied by present policies. Japan’s Topix index dived 0.3% and South Korea’s Kospi index slipped 0.1%. Australia’s S&P/ASX 200 Index profited 0.1%, the highest closing level in 5 1/2 years. New Zealand’s NZX 50 Index incurred 0.3%.

The MSCI Asia Pacific Index advanced 5.6% from this year low on February 4 through last week, trading at 12.9 times the figured profits of its constituent firms, as compared to 15.6 for the Standard & Poor’s 500 Index and 14.5 for the Stoxx Europe 600 Index, based on the data collected by Bloomberg. 

HSBC Earnings

HSBC Holdings Plc, Europe’s biggest bank enrolled in Hong Kong and London, is about to report earnings today. China will release property price data for January today. A final reading for euro zone inflation last month is also due today, together with Germany’s Ifo institute business climate gauge.

The timing of stimulus withdrawal in developed economies will look on the expectation for prices and growth, G-20 finance ministers and central bank chiefs said following the weekend meeting in Sydney. While the group recognized latest market volatility and noted the global economy still faces weaknesses, officials supported a plan to aspire for over 2% increase in collective gross domestic product.