Asian stocks fell to a seven-week low, led by mining companies and automakers, after surprise job losses in the U.S. heightened concern the world's biggest economy is in recession.
Toyota Motor Corp., Japan's largest automaker, retreated after the yen climbed to an eight-year high. BHP Billiton Ltd., the world's biggest mining company, declined on concern demand for metals will weaken. Malaysia's benchmark stock index tumbled the most since 1998 after the ruling coalition lost its two- thirds majority in parliament.
``The sentiment in the market is probably about as bad as it gets,'' said Steven Marsh, who helps manage the equivalent of $632 million at Trust Co. in Sydney. ``Everyone thought the U.S. would go into recession and now we're getting the data to prove it.''
The MSCI Asia Pacific Index slumped 1.9 percent to 136.94 at 2:51 p.m. in Tokyo, set to close at its lowest since Jan. 22. The gauge has fallen 13 percent this year amid fears of mounting credit-market losses and a U.S. recession that have wiped about $5 trillion from global stock markets.
Japan's Nikkei 225 Stock Average fell 1.8 percent to 12,557.98, while South Korea's Kospi index retreated 1.9 percent. All regional markets dropped, as did eight of the MSCI benchmark's 10 industry groups.
Dollar, Yen
In Hong Kong, Sun Hung Kai Properties Ltd. slumped after CLSA Asia-Pacific Markets cut its recommendation on the stock for the first time in three years. China Railway Construction Corp. rose 24 percent in its first day of trading in Shanghai, the country's worst debut since 2006.
The U.S. Standard & Poor's 500 Index lost 0.8 percent on March 7 after a government report showed February payrolls fell the most in five years. Economists had estimated an increase.
The dollar weakened to 101.43 against the yen on March 7, the lowest since January 2000, as odds firmed that the U.S. Federal Reserve will cut interest rates by 0.75 percentage point at a March 18 policy meeting to stimulate growth, futures trading shows. The Fed's key rate now stands at 3 percent.
Toyota, which counts North America as its biggest market, fell 1.7 percent to 5,240 yen. Every 1 yen gain in the Japanese currency against the dollar trims 35 billion yen ($342 million) from Toyota's annual operating profit, according to the company.
Rapid Deterioration
Sony Corp., reliant on the U.S. for 27 percent of sales, lost 4.6 percent to 4,400 yen. Japanese stocks fell even after a government report showed machine orders jumped the most in seven years in January.
``The global economy is deteriorating more rapidly than here in Japan,'' said Kiyoshi Ishigane, who helps oversee $61 billion in assets at Mitsubishi UFJ Asset Management Co. in Tokyo. ``The strong machinery orders is a good sign, but it doesn't change the fundamental outlook of worsening figures to come.''
Taiwan Semiconductor Manufacturing Co., the world's largest maker of customized chips, slumped 4.4 percent to NT$61.20. Yue Yuen Industrial Holdings Ltd., which makes sports shoes for Nike Inc., lost 2.4 percent to HK$22.30 in Hong Kong.
Sun Hung Kai, the city's No. 1 property developer by market value, dropped 5 percent to HK$119.70 after CLSA cut its rating to ``underperform'' from ``buy.'' Zijin Mining Group Co., the largest gold producer in China, plunged 8 percent to HK$9.27. Credit Suisse Group cut its share-price forecast to HK$9.30 from HK$9.60.
Reduced Majority
BHP dropped 4.1 percent to A$37.30, the most since Feb. 6. Rio Tinto Group, the world's third-largest mining company, fell 3.6 percent to A$126.48. Sumitomo Metal Mining Co., Japan's biggest gold producer plummeted 10 percent to 1,996 yen.
Gold futures in New York retreated for a third day from a record in after-hours trading, while copper declined as much as 0.7 percent. Platinum prices last week completed the biggest weekly decline in eight years.
``If you get a slowdown in growth around the world you're going to have commodity stocks come back a bit,'' said Trust Co.'s Marsh.
PT Bumi Resources, Indonesia's largest coal exporter, dropped 7.1 percent to 6,500 rupiah. The country may impose an excise duty on shipments of minerals including coal starting this year, the Kontan newspaper said, citing Effendi Simbolon, a member of the House of Representatives.
Malaysia's Kuala Lumpur Composite Index tumbled 7.7 percent, the most since Sept. 8, 1998, at the height of the Asian financial crisis. The ruling National Front coalition in a March 8 election lost the two-thirds majority it held in parliament, sparking concern the opposition will delay state projects.
`More Worries'
Malaysian Resources Corp. led declines among companies building roads and bridges under a 200 billion ringgit ($63 billion) public works program.
The stock fell 30 percent to 1.36 ringgit. UEM World Bhd., a state-controlled builder developing Malaysia's biggest property project, plummeted 19 percent to 2.78 ringgit.
``We're entering uncharted territory,'' said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management Bhd. Foreign investors ``have been selling down the market in the last month over external factors, now they have this domestic issue that will cause them more worries,'' he said.
China Railway, builder of more than half the nation's railroads, climbed 26 percent to 11.46 yuan. Concern the government will increase measures to cool the economy weighed on the company's debut, which compares to an average tripling in the stock of the 20 companies that began trading in Shanghai and Shenzhen this year.
No comments:
Post a Comment