By Patrick Chu and James Paton Dec. 30 (Bloomberg) -- Asian stocks fell and the currencies of commodity-producing countries Australia and Norway, some of the best performers in 2009, weakened against the dollar. The MSCI Asia Pacific Index declined 0.6 percent to 119.98 as of 12:50 p.m. in Tokyo, with about twice as many stocks dropping as advancing. Japan Airlines plunged on reports that lenders oppose a bankruptcy plan. The Australian dollar fell 0.4 percent to 89.16 U.S. cents, snapping five days of gains. Norway’s currency also slid 0.4 percent to trade at 5.8246 per dollar. Futures on the Standard & Poor’s 500 Index fell 0.2 percent following a 0.1 percent dip in New York yesterday. Shares in Asia trade at 30 times reported profits, the most since 2002, after the MSCI AC Asia Pacific Excluding Japan Index soared 66 percent this year, more than double the gains of the benchmark MSCI World Index of developed markets. Emerging-market equity fund inflows tripled last week, according to EPFR Global in Cambridge, Massachusetts. At the same time, investors opened fewer accounts to trade China stocks for a fourth straight week. “After strong gains over the past year, there’s a propensity to lock in profits and reposition for 2010,” said Mark Pervan, a senior commodity strategist at ANZ Banking Group Ltd. in Melbourne. “Now, I think you’re going to see sideways movement.” The Nikkei 225 Stock Average fell 0.3 percent in Japan, the country’s last day of trading this year. The measure has fallen 73 percent since it rose to an intraday record of 38,957.44 on the last day of trading in 1989. The Nikkei has gained nearly 20 percent this year, compared to 34 percent for the MSCI Asia Pacific Index. JAL Plunges Japan Airlines plunged 25 percent to a record low on reports the carrier’s biggest lenders oppose a plan to restructure the company through bankruptcy. Asiana Airlines lost 7.7 percent in Seoul after its parent said it may ask creditors to restructure the debt of some affiliates. Newcrest Mining Ltd., Australia’s largest gold producer, declined 0.5 percent in Sydney. BHP Billiton Ltd., the world’s biggest mining company, retreated 0.4 percent. China’s Shanghai Composite Index rose 0.9 percent to a two- week high after commodity prices gained. China Shenhua Energy Co., the nation’s largest coal producer, added 1.1 percent and Tongling Nonferrous Metals Group Co., the second-biggest copper producer, climbed 2.2 percent. “We are still optimistic about the market,” said Zhang Gang, a strategist at Central China Securities Holdings Co. in Shanghai. “It will probably go up higher next year after the fluctuations these days, because new economic data and money supply figures are expected to be strong.” Aussie Weakens Currencies of commodity producers fell, led by the Norwegian krone and Australia’s dollar. The so-called Aussie is headed for its first monthly decline since January as traders pared bets the Reserve Bank of Australia will continue raising interest rates, damping demand for the nation’s assets. The Aussie has surged 27 percent this year, heading for its largest annual advance since 2003. Norway’s krone is up 19 percent, poised for its best year since 2002. The euro fell against the dollar for a third day on speculation renewed financial concerns in the euro-zone will make further rating downgrades likely The euro declined to $1.4311 in Tokyo from $1.4354 in New York yesterday. The dollar bought 92.17 yen from 92.00 yen. That’s the highest level since Oct. 27. The euro was at 131.91 yen from 132.05 yen. The dollar has appreciated 4.9 percent versus the euro this month, trimming its 2009 decline to 2.4 percent. The greenback has fallen 30 percent against the euro this decade. Treasury Auction Treasuries were little changed, heading for the worst year since at least 1978, as the U.S. stepped up debt sales to help spur growth in an economy recovering from its deepest recession in six decades. The Treasury will sell $32 billion in seven-year debt today, the last of three auctions this week totaling $118 billion. U.S. government securities have fallen 3.6 percent this year, according to Bank of America Merrill Lynch indexes, the worst performance since Merrill began collecting the data. The yield on the benchmark 10-year note was unchanged at 3.80 percent in Tokyo, according to BGCantor Market Data. The yield has increased 1.6 percentage points this year. The 3.375 percent debt due in November 2019 traded at 96 17/32. President Barack Obama is borrowing unprecedented amounts for spending programs. U.S. marketable debt increased to a record $7.17 trillion in November from $5.80 trillion at the end of last year. Oil Declines Crude oil snapped five days of gains as investors sold contracts to lock in profits at the end of the year and the dollar traded near a two-month high against the yen. Oil had climbed 8.8 percent in the past five days and surged 77 percent this year on signs of a global economic recovery. U.S. consumer confidence improved in December for a second month. Crude oil for February delivery fell as much as 35 cents, or 0.4 percent, to $78.52 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $78.80 in Asia. Futures, which have tripled in the past decade, closed yesterday at the highest settlement since Nov. 18. Gold for immediate delivery declined 0.3 percent to $1,093.38 an ounce as a strengthening dollar curbed demand, trimming this year’s advance to 24 percent. Copper in London rose 0.3 percent to $7,296 a metric ton. The metal jumped to a 15-month high yesterday as workers at the world’s second-biggest copper mine voted to go on strike, and has more than doubled this year. To contact the reporters on this story: Patrick Chu in Tokyo at pachu@bloomberg.net.

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