Asian Stocks Decline, Led by Mining Companies on Growth Concern – Bloomberg

Asian stocks fell, led by mining
companies after commodity prices slumped on concern a weaker
outlook for global economic growth will crimp demand for raw
materials.

BHP Billiton Ltd. (BHP), the world’s biggest mining company, sank
3.3 percent in Sydney. LG Display Co., which supplies touch
screens for Apple Inc.’s iPhone and iPad, dropped 3.4 percent in
Seoul after audio-chip maker Cirrus Logic Inc. reported an
inventory glut that suggests iPhone sales may fall short of
analysts’ expectations. Softbank Corp., Japan’s third-largest
wireless carrier, lost 1.7 percent as a rival’s bid for Sprint
Nextel Corp. gained shareholder support.

The MSCI Asia Pacific Index (MXAP) slipped 0.5 percent to 136.79
as of 11:57 a.m. in Tokyo, with about three shares falling for
every two that rose on the gauge. Nine of the 10 industry groups
fell on the benchmark, which is heading for its third day of
decline this week after reports showed Chinese growth and
industrial production expanded less than economists estimated.
The International Monetary Fund this week cut its global growth
forecast as Europe sinks deeper into recession.

“Weak corporate earnings results and renewed concerns
about the global economy saw traders switch to a risk-off
mode,” said Matthew Sherwood, head of investment markets
research in Sydney at Perpetual Investments, which manages about
$25 billion.

Stronger Yen

Japan’s Nikkei 255 Stock Average fell 0.4 percent as the
yen advanced for the first time in three days. A stronger
currency reduces the value of overseas income at the nation’s
exporters when repatriated.

Japanese exporters dropped. Toyota Motor Corp., the world’s
biggest carmaker, slipped 1.3 percent to 5,480 yen. Fanuc Corp.,
a supplier of industrial robots, decreased 2 percent to 14,920
yen. Camera maker Nikon Corp. fell 1.6 percent to 2,136 yen.

The broader Topix index surged 57 percent from mid-November
through yesterday amid confidence Prime Minister Shinzo Abe and
newly appointed BOJ Governor Haruhiko Kuroda would take steps to
tackle deflation. The gauge may drop about 10 percent as
investors await corporate earnings and progress on promised
economic reforms, said Jonathan Garner, Hong Kong-based chief
strategist for Asia and emerging markets at Morgan Stanley.

South Korea’s Kospi index fell 0.3 percent. Australia’s
S&P/ASX 200 Index lost 0.7 percent and New Zealand’s NZX 50
Index dropped 0.2 percent. Taiwan’s Taiex Index added 0.1
percent. Hong Kong’s Hang Seng Index and China’s Shanghai
Composite Index swung between gains and losses.

Spring Break

The MSCI Asia Pacific Index advanced 6.2 percent this year
through yesterday amid signs the U.S. economy is recovering and
as Japanese shares rallied on optimism the Bank of Japan will
step up efforts to stimulate the economy. Shares on the gauge
traded at 13.8 times average estimated earnings compared with 14
for the Standard & Poor’s 500 Index and 12.3 times for the Stoxx
Europe 600 Index, according to data compiled by Bloomberg.

Futures on the Standard & Poor’s 500 Index added 0.1
percent. The gauge yesterday dropped 1.4 percent amid
disappointing earnings results by companies from Bank of America
Corp. to Textron Inc. U.S. stocks are poised for a “spring
break” that will bring losses to investors as economic growth
slows and corporate earnings weaken, according to Jonathan Golub, chief U.S. equity strategist at UBS AG.

Raw-material producers posted the biggest decline among the
10 industry groups in the MSCI Asia Pacific Index as copper
futures dropped by most in a year, heading for the lowest price
since October 2011. Gold, Silver and oil fell.

BHP, Inpex

BHP Billiton sank 3.3 percent to A$31.015 in Sydney.
Newcrest Mining Ltd., Australia’s biggest gold producer, slipped
4.6 percent to A$16.32. Inpex Corp., Japan’s largest energy
explorer, lost 1.8 percent to 480,000 yen.

Apple Inc. suppliers declined after Cirrus yesterday posted
preliminary first-quarter net revenue that missed analyst
estimates due to high inventories. Apple accounts for more than
90 percent of Cirrus’s revenue, according to supply chain
estimates compiled by Bloomberg.

LG Display dropped 3.4 percent to 30,250 won in Seoul.
Murata Manufacturing Co., a parts supplier to Apple, slid 1.6
percent to 7,980 yen in Tokyo. AAC Technologies Holdings Inc. (2018),
which supplies speakers used in iPhones, decreased 3.5 percent
to HK$36.85 in Hong Kong.

Softbank slid 1.7 percent to 4,340 yen in Tokyo. Dish
Network Corp.’s $25.5 billion proposal to take over Sprint is
better than a board-endorsed offer by Softbank, investor Omega
Advisors Inc. said yesterday, joining billionaire John Paulson
in praising the bid.

To contact the reporters on this story:
Jonathan Burgos in Singapore at
jburgos4@bloomberg.net;
Adam Haigh in Sydney at
ahaigh1@bloomberg.net

To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net