By Darren Boey and Jonathan Burgos Nov. 3 (Bloomberg) -- Most Asian stocks fell as concern over the withdrawal of stimulus measures overshadowed Ford Motor Co.’s unexpected profit and a rally in gold prices. National Australia Bank Ltd. sank 1.8 percent as the country’s central bank raised interest rates for the second time in four weeks. Sino Land Co. dropped 2.5 percent in Hong Kong on concern the government will enact measures to curb property speculation. Hyundai Motor Co. added 2.5 percent in Seoul as Ford said it expects to be “solidly profitable” in 2011. Zijin Mining Group Co., China’s No. 1 gold producer, rose 2.7 percent in Hong Kong after the precious metal climbed to a one-week high. Six stocks declined for every five that rose on the MSCI Asia Pacific excluding Japan Index, which lost 0.5 percent to 387.05 as of 1:54 p.m. in Hong Kong. The gauge has surged 89 percent from a three-month low on March 2 on signs government stimulus measures will revive the global economy. “We’re tending towards the view that we will see some relapse next year as people basically lose faith in governments’ ability to continue to come to the rescue,” said Peter Elston, a Singapore-based strategist at Aberdeen Asset Management Plc, which had about $234 billon under management as of Sept. 30. Japanese markets are closed for a holiday. China’s Shanghai Composite Index climbed 0.9 percent and Hong Kong’s Hang Seng Index lost 0.7 percent. Australia’s S&P/ASX 200 Index dropped 0.2 percent, while South Korea’s Kospi Index lost 0.3 percent. India’s Sensitive Index declined 0.4 percent. Suzlon Energy Ltd., the country’s biggest maker of wind-turbine generators, and Reliance Communications Ltd. slumped more than 5 percent after their quarterly results missed analyst estimates. U.S. Factory Index Futures on the U.S. Standard & Poor’s 500 Index added 0.2 percent. The gauge advanced 0.7 percent yesterday as the Institute for Supply Management’s factory index rose to a three- year high. National Australia Bank, the country’s third-largest by market value, lost 1.8 percent to A$28.39, while Westpac Banking Corp., the second biggest, dropped 0.6 percent to A$25.43. Australia’s central bank raised its overnight cash rate target to 3.5 percent from 3.25 percent, as forecast by 18 of 22 economists surveyed by Bloomberg News. The rest expect a half- point increase. Australia on Oct. 6 became the first Group of 20 nation to raise interest rates amid signs of strength in its economy, while the Bank of Japan said last week it will let its programs of buying corporate debt expire at the end of the year. October Decline Investor concern about the withdrawal of stimulus policies and lower-than-estimated profits at companies from PetroChina Co. to National Australia Bank Ltd. have dragged the MSCI Asia Pacific Index, which includes Japan, down by 5.2 percent from this year’s high on Oct. 20. The measure lost 1.3 percent last month, the first drop since February. Stocks on that MSCI gauge trade at an average 22 times estimated profit, the lowest level since May 14, according to Bloomberg data. That’s still higher than the 13.7 times at the start of the year. “Further improvements in the economic and corporate news will help justify valuations,” said Jason Teh, who helps manage $3.2 billion at Investors Mutual in Sydney. “A lot of stocks have had a good run, making it harder to find value in this market.” India’s Suzlon tumbled 8.3 percent to 61.3 rupees as its loss in the three months ended Sept. 30, including that of units, widened on slowing equipment orders. Reliance Communications, India’s second-largest mobile-phone operator, slumped 5.7 percent to 165.8 rupees on Oct. 31 reported a 52 percent tumble in second-quarter net income. Government Stabilization In Hong Kong, Sino Land dropped 2.5 percent to HK$14.34. Sun Hung Kai Properties Ltd., Hong Kong’s No. 1 property developer by market value, declined 2.2 percent to HK$115.20. Hong Kong Chief Executive Donald Tsang said yesterday the government is “closely” monitoring the local property market and has tools available to stabilize it if necessary. The Hong Kong Monetary Authority last month raised down-payment requirements for luxury homes for the first time since 1991. “People seem to have recognized that their dream about continually rising property shares has burst,” said Castor Pang, a research director at CINDA International Holdings Ltd., a Hong Kong brokerage. In Seoul, Hyundai Motor rose 2.5 percent to 104,500 won. The company controlled 4.4 percent of the U.S. auto market at the end of September, according to Autodata Corp. Kia Motors Corp., which got 30 percent of its revenue last year in North America, gained 2.8 percent to 18,150 won. Gold Prices Ford, the only major U.S. automaker to avoid bankruptcy, posted a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion, or $1.32. Ford beat the 20 cents a share adjusted loss estimated by an average of 11 analysts surveyed by Bloomberg. Zijin Mining rose 2.7 percent to HK$7.87 after gold futures in New York gained 1 percent in after-hours trading. Prices jumped 1.3 percent to $1,054 an ounce in New York yesterday, the highest closing level since Oct. 23. Newcrest Mining Ltd., Australia’s largest gold producer, climbed 3.9 percent to A$33.38, while Lihir Gold Ltd. added 4.3 percent to A$3.17. To contact the reporters for this story: Darren Boey in Hong Kong at dboey@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

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