20.06.201304:41:06UTC+00Aussie, Korea lead Asian stocks decline after Fed

Asian stocks fall back Thursday after the Federal Reserve signaled it may gradually wind down its bond purchases if the U.S. economy continued to progress, weighing down shares on Wall Street.

Stocks in the resource sector dve steeply, as commodity prices down in the wake of the U.S. dollar’s rally, while some Japanese automobile shares gained as the yen weakened.

“What caught the market off guard is that the Fed anticipates the pace of recovery in the labor market to be quicker than what the market previously predicted. Consequently, the possibility of scaling down the current bond-buying program is likely to be sooner than what is currently priced in,” said CMC Markets sales trader Miguel Audencial.

South Korean’s Kospi missed 1.4%, and Australia’s S&P/ASX 200 backslide 1.2%.

In Tokyo, the Nikkei Stock Average surrendered 0.7%, and the broader Topix relinquished 0.4%.

Commodity-sector stocks were pressured across the region as prices for gold and other metals drifted back after the Fed’s announcement.

Fortescue Metals Group Ltd. missed 3.9%, and shares of gold miner Newcrest Mining Ltd. slumped 2.3% in Sydney.

Energy producer Inpex Corp. downturned 2.5% in Tokyo, while Korea Zinc Co. traded 2.8% lower in Seoul.

The declines came ahead of a range of economic data that were due to be released later in the day, with HSBC set to release the preliminary result of its monthly survey on Chinese manufacturing conditions.

Real-estate stocks pulled back in Japan after the Fed’s decision, with Sumitomo Realty & Development Co. off tracking 3.6%, and Mitsubishi Estate Co. losing 1.2%.

Among other notable backsliders, shares of Nikon Corp. moved 3.8% back, Hitachi Construction Machinery Corp. recorded a 2.8% decrease, and convenience-store operator Seven & I Holdings Co. skid 2.6%.

But some automobile exporters inched up as the U.S. dollar jumped alongside a rally in Treasury yields after the Fed decision, although the sharp losses on Wall Street weighed on most firms.

Shares of Subaru-maker Fuji Heavy Industries Co. bolster 1.8%, and Mazda Motor Corp. surged 2.5%.

Banks and other high dividend-yield issues fell in Australia after the the Australian dollar got knocked below 93 U.S. cents in the wake of the Fed’s decision.

Shares of Westpac Banking Corp. lost 2%, and Commonwealth Bank of Australia fell 1.6%.