Overnight Markets: Asian stocks mixed as Perpetual bid boosts asset managers

Asian stocks were trading mixed on Monday as Australian asset managers surged in response to a private-equity bid for Perpetual, and Mazda Motor fell on speculation Ford Motor may cut its stake in the Japanese automaker.

The MSCI Asia Pacific Index fell 0.3% at 132 as of 11:24 a.m. in Tokyo. Japan’s Nikkie was up 0.6% at 9,554. Korea’s Kospi Index was down 0.6%, while Shanghai Composite Index in China was down 0.3% at 2,961. Australia’s S&P/ASX 200 Index slid 0.9%. Hong Kong’s Hang Seng Index declined 1% as HSBC Holdings led banks lower.               

Perpetual climbed 24% in Sydney after Kohlberg Kravis Roberts & Co. offered as much as $1.73 billion for the firm. Challenger Financial Services Group gained 5.8%. BHP Billiton fell sank 0.6% after abandoning plans to create the world’s largest iron-ore exporter. Mazda Motor fell 1.9% in Tokyo after reports Ford may cut its stake in the company.

In the US and Europe, investors will focus on financials this week as several household names report earnings amid concern a forced halt to foreclosure proceedings could hit the sector and end the recent rally.

Banks reporting results include Wells Fargo, Bank of America, and Citigroup, three of the largest mortgage lenders in the nation.

Other companies from a range of industries declaring results include Apple Inc, Caterpillar and Johnson & Johnson.

Among other important moves, the Federal Reserve will release its Beige Book during the week offering another insight into the central bank's thinking on the economy.

Industrial production data will commence the week, followed by Tuesday's report on September housing starts. Housing starts are seen slipping to an annualized rate of 580,000 units, according to economists polled by Reuters.

Meanwhile, investors will also get vital clues about China’s economy from the country’s third-quarter gross domestic product figures, which will indicate whether Shanghai’s recent equity market rally can be sustained. The data are set to show that the economy has expanded less quickly than in the first half.