2014.12.0308:04:44UTC+00Asian stocks drop despite high valuations as telecommunications plummet

Asian stocks dropped with telecommunications leading the decline despite valuations reaching its highest in more than a year. Japanese and Chinese shares surged with the former keeping steady at its six-year high while the latter’s valuations boosted.

The MSCI Asia Pacific Index shed 0.1% to 139.83 in Hong Kong.

Japanese stocks is on a four-day winning streak with the Topix Index closing at a six-year high on good performance from brokers and automakers while Chinese stocks surged with turnovers surpassing 500 billion yuan as the benchmark index reached a three-year high. Commodity and consumer shares led the rally.

The Topix Index advanced by 0.1% to 1,429.75 at the end of trading in Tokyo. The gauge advanced as much as 0.9% before settling still at the index’s six-year high. The Nikkei 225 Stock Average added 0.3% to 17,720.43 with the nation’s currency weakened to match the dollar near the 120 mark at 119.27 yen per dollar. The Shanghai Composite Index rose by 0.6% to 2,779.53 at the end of trade. The gauge had an intraday high that added to the index as much as 2.2%.

Australia’s S&P/ASX 200 and South Korea’s KOSPI Index rose by 0.77% or 40.56 points to 5,321.82 and 0.21% or 4.08 points to 1,969.91. Hong Kong’s Hang Seng Index shed 0.95% or 225.68 points to 23,428.62 respectively.