Asian Stocks Drop as Investors Avoid Risk Before Yellen Speech
- Regional gauge set for longest weekly losing streak since June
- Japan’s Topix erases gain for week as insurers, autos drop
China's Early Indicators Show Weak Sentiment
Asian stocks fell to a two-week low, led by shares in Japan, as investors showed a reluctance to take on risk before Federal Reserve Chair Janet Yellen’s speech that may provide clues on when the world’s largest economy will raise interest rates.
The MSCI Asia Pacific Index slid 0.5 percent to 138.25 as of 4:10 p.m. in Hong Kong, set for its second weekly drop, its longest losing streak since June. Japan’s Topix index sank 1.3 percent as the yen traded at 100.45 to the dollar. A rally in equities lost steam this month as investors pulled back risk before a speech by Yellen later Friday. Odds that the Fed will boost rates in September has jumped to 32 percent from 18 percent at the end of July, while traders are betting there’s a 57 percent chance of tightening in December.