Asian stocks decline on concerns over growth

Asian stocks decline on concerns over growth
Comment E-mail Print Share
First Published: Thu, Jul 09 2009. 12 10 AM IST
Updated: Thu, Jul 09 2009. 12 10 AM IST
Tokyo: Asian stocks declined for a sixth day, the longest losing streak since September, as Japanese machinery orders unexpectedly dropped. Treasurys gained and the yen strengthened to a six-week high against the euro and the dollar.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest publicly traded bank, sank 3.4% after lending in the nation slowed. PetroChina Co., China’s largest oil producer, sank 2.3% in Hong Kong as oil prices headed for the longest losing streak since December. Honda Motor Co., which gets 45% of its sales in North America, slumped 5.5% in Tokyo on concern a gain in the yen will hurt its overseas revenue.
The market is finally returning its focus to the present, rather than looking for an eventual recovery, said Masaru Hamasaki, a Tokyo-based strategist at Toyota Asset Management Co., which oversees $14 billion (around Rs68,460 crore). The economic rebound won’t be rapid. Share prices are beginning to reflect that.
The MSCI Asia Pacific Index dropped 1.3% to 100.51 in Tokyo, taking its six-day decline to 2.6%. The decline is the longest losing streak since September, when the credit crisis caused the collapse of Lehman Brothers Holding Inc.
Ten-year treasury notes rose, pushing yields to the lowest level in six weeks, as the decline in stocks increased demand for the safety of government debt. The yen rose to the highest since 22 May against the dollar.
Japan’s Nikkei 225 Stock Average fell 2.4%. Hong Kong’s Hang Seng Index lost 0.8%, led by China Construction Bank Corp., which dropped 0.9% amid speculation the Chinese government will curb lending to limit increases in house prices. Indonesia’s stock market is closed for presidential elections.
feedback@livemint.com
Comment E-mail Print Share
First Published: Thu, Jul 09 2009. 12 10 AM IST