BLBG: Most Asian Stocks Fall, led by Electronic Makers; Banks Advance
By Masaki Kondo
Jan. 7 (Bloomberg) -- Most Asian stocks fell as concerns about electronic manufacturers’ earnings overshadowed gains among banks and mining companies.
Samsung Electronics Co. lost 2.6 percent in Seoul as a stronger won countered the company’s earnings report. LG Electronics Inc. tumbled 7.6 percent on concern profit at the handset business may miss analyst estimates. Korea Zinc Co. jumped 2.9 percent on higher metal prices. Sumitomo Mitsui Financial Group Inc., Japan’s No. 2 bank by market value, climbed 4.1 percent on optimism a share sale announced yesterday will help the company reduce interest payments.
Five stocks declined for every four that advanced on the MSCI Asia Pacific Index, which was little changed at 124.10 as of 2:46 p.m. in Tokyo. The gauge climbed 34 percent last year, the biggest annual gain since 2003, as central banks cut borrowing costs and governments boosted spending to drag their economies out of recession.
“The economy’s fundamentals aren’t perfect but they’re improving,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $65 billion. “Stocks this year won’t rise as rapidly as in 2009, but the bull market is likely to be long lasting.”
Japan’s Nikkei 225 Stock Average fell 0.4 percent. The Kospi Index sank 1 percent in Seoul, where the central bank’s board meets tomorrow on interest rates.
China’s Shanghai Composite Index retreated 0.4 percent. China Citic Bank Corp. fell 2 percent in Shanghai after the central bank said it will target “moderate” loan growth in 2010. Hong Kong’s Hang Seng Index declined 0.2 percent.
The Philippine Stock Exchange Index jumped 1.3 percent, the most among benchmark gauges in Asia. San Miguel Corp., the nation’s largest food and drinks maker, climbed 7.5 percent after agreeing to a takeover plan by its directors.
Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The stock gauge added 0.1 percent yesterday as minutes from the Federal Reserve’s last policy meeting showed central bankers considered more stimulus measures.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
