By Shiyin Chen and Susan Li Dec. 15 (Bloomberg) -- Asian stocks declined, led by Chinese developers, on speculation China will curb land speculation. Oil and copper rose, and the Australian dollar fell after the central bank damped expectations for higher loan rates. The MSCI Asia Pacific Index fell 0.4 percent to 119.92 at 4:20 p.m. Tokyo time. Futures on the Dow Jones Euro Stoxx 50 were up 0.4 percent at 7:20 a.m. in London. U.S. stock futures were little changed. Oil snapped a nine-day losing streak, the longest in eight years, as prices below $70 a barrel triggered purchases that sent crude up 0.6 percent to $69.89 a barrel. Copper for delivery in three months in London rose 0.5 percent to $6,945 a metric ton. The Aussie fell 0.5 percent versus the dollar and declined against 15 of its 16 counterparts. The Chinese government will target “excessive” property price increases in some cities, the state-owned Xinhua News Agency said. Separately, rising Chinese demand may boost metals prices next year, Roger Agnelli, the chief executive officer of Vale SA, the world’s largest iron ore producer, said yesterday. “Markets have rebounded quite strongly and if you look at valuations across the region, it’s probably the most expensive on a global basis,” Christopher Wong, a fund manager at Aberdeen Asset Management Ltd. in Singapore, which oversees about $25 billion of Asian assets, said in a Bloomberg Television interview today. ”And Asia does not offer much value in a valuation perspective, which is why we’re a bit cautious going into the new year.” The MSCI Asia Pacific Index lost 0.2 percent to 120.15. The gauge is up 34 percent this year, set for its biggest annual gain since 2003. The Shanghai Composite index fell 0.8 percent, led by property companies. ‘Winding Down’ “There’s just a general feeling that we are winding down for New Year and the bulk of the buying has been done this year,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “We’re just lacking the catalyst to really attract buyers at present. Traders are more happy to trade individual news stories.” China Vanke Co. led declines among shares of China’s real-estate companies on speculation the government will take more steps to curb property speculation. China Vanke Co., the nation’s biggest listed developer, slid 2.5 percent to 11.50 yuan in Shenzhen after the Xinhua News Agency said the government will target “excessive” growth in property prices in some cities. Poly Real Estate Group Co. lost 2.9 percent to 23.86 yuan. China’s property prices climbed last month at the fastest pace since July 2008, adding to concern that record lending may fuel unsustainable asset-price increases. The State Council said last week the government will re-impose a sales tax on homes sold within five years, after cutting the period to two years in January. “Government policy is a big risk to property stocks,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai. China Demand “We see strong evidence” that Chinese demand “is booming and there is still a lot of room” for consumption outside of China to improve in the first half of 2010, said Macquarie Group Ltd. analysts led by Jim Lennon in a report today. Inbound shipments of copper to China climbed 10 percent last month from October, the customs office said Dec. 11. The London Metal Exchange index of six industrial metals increased 2 percent in the past two days, as Dubai debt default concerns eased. Copper used in power cables, homes and cars has more than doubled this year as the global economy recovers from its worst postwar recession, while the dollar slid 6.1 percent in the same period. Copper imports by China, the world’s largest metals user, rebounded 10 percent from a nine-month low in November. Crude advanced from its lowest level in more than two months amid falling industrial output in Europe and the smallest improvement this year in consumer confidence in Japan, the third-largest oil-consuming country. Yesterday, oil fell to $69.51, the lowest settlement since Sept. 29. Prices have gained 57 percent this year after tumbling 54 percent in 2008. “In the New Year, investors are going to start to reload, and therefore we can expect that right now is a good buy opportunity,” Victor Shum, a senior principal at consultants Purvin & Gertz Inc., said in a Bloomberg Television interview in Singapore. “I expect pricing to average $80 a barrel in 2010.” Australian Rates The Australian dollar fell to 91.25 U.S. cents from 91.68 after the nation’s central bank said it discussed keeping interest rates unchanged in minutes of its December meeting, when policy makers raised borrowing costs for an unprecedented third straight month. “The question for members was whether it was more appropriate to take a further step at this meeting or to hold the cash rate steady pending a further evaluation of developments,” Reserve Bank of Australia policy makers said in minutes released today of their Dec. 1 gathering. Their next meeting will be in February. Benchmark interest rates are 3.75 percent in Australia, compared with 0.1 percent in Japan and as low as zero in the U.S. The dollar was little changed at $1.4650 per euro in Tokyo from its close in New York yesterday, and 0.4 percent weaker than its two-month high of $1.4586 on Dec. 11. Won Falls The South Korean won dropped on concern yesterday’s gain was excessive given Abu Dhabi’s bailout of a Dubai won’t clear up all of the city’s debt. The won weakened 0.4 percent to 1,161.85 per dollar, following yesterday’s 0.6 percent rally. The price of debt from Dubai state-controlled entities DP World Ltd., Dubai Commercial Operations Group LLC and Nakheel PJSC remains as much as 29 percent lower than before the emirate said on Nov. 25 it was seeking a “standstill” from creditors. The global recovery, growing profits and low interest rates will help extend the bull market for Asia stocks outside of Japan, JPMorgan Chase analysts led by Adrian Mowat wrote in a report today. Iron ore sold under contracts may gain 20 percent next year, compared with an earlier forecast for a 10 percent rise, JPMorgan said. BHP added 0.8 percent to A$40.96, while Rio Tinto Group, the world’s third-biggest mining company, gained 0.9 percent to A$71.15. BHP was raised to “neutral” from “underweight” and Rio was raised to “overweight” from “neutral,” JPMorgan analysts said yesterday in a separate report. Raw-material producers are the best performing of the MSCI Asia Pacific Index’s 10 industry groups this year. For Related News and Information To contact the reporters on this story: Shiyin Chen in Singapore at Schen37@bloomberg.net; Susan Li in Hong Kong at sli31@bloomberg.net

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