Asian stocks slip amid concerns on recovery

Asian stocks fell, sending the MSCI Asia Pacific Index down the most in a month, as commodities sank and investors questioned the pace of the economic recovery.

MSCI's Asia index retreated 1.6 per cent to 101.97 in Tokyo, the biggest drop since May 14. The gauge has surged 44 per cent from a more than five-year low on March 9 amid speculation the global economy is recovering. The index trades at 23.4 times estimated earnings, compared with 14.5 for the Standard & Poor's 500 Index in the US.

Japan's Nikkei 225 Stock Average fell 2.9 per cent to 9,752.88 even as the central bank raised its assessment of the economy for a second month. The Bank of Japan left its benchmark overnight lending rate unchanged at 0.1 per cent. Hong Kong's Hang Seng Index declined 1.8 per cent.

The Kospi Index dropped 0.9 per cent in Seoul as MSCI, whose stock indices are tracked by investors with about $3 trillion (Dh11trn) in assets, left South Korea unchanged as an emerging market. The country, home to Asia Pacific's sixth-largest stock market, had been under review for an upgrade to developed status.

PetroChina, China's biggest oil producer, sank 2.6 per cent in Hong Kong and Rio Tinto Group, the world's third- largest mining company, lost three per cent in Sydney as oil and copper fell.

Toyota Motor declined 3.4 per cent after the yen strengthened and a New York manufacturing report missed estimates.

Konica Minolta Holdings slumped 6.6 per cent in Tokyo after Credit Suisse Group downgraded the printer maker. Australia's Nufarm, which supplies farm chemicals, sank 12 per cent after cutting its profit target.

Cnooc, China's largest offshore oil producer, dropped 5.5 per cent to HK$9.90. BHP Billiton, the world's biggest mining company, fell 1.5 per cent to A$36.46.

Sony, the maker of the PlayStation 3, lost three per cent to ¥2,550. (Agencies)

Among stocks that rose yesterday, Macquarie Communications Infrastructure Group surged 26 per cent after receiving an increased takeover bid. Canada Pension Plan Investment Board raised its offer for the company by 20 per cent after shareholders threatened to block the purchase.

Berjaya Sports Toto, Malaysia's biggest number-betting operator, rose 5.9 per cent to 5.25 ringgit after fourth-quarter net income jumped 67 per cent and the company announced a special dividend. 

 

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