03 Mar 2009
March 3 (Bloomberg) -- Most Asian stocks fell, led by banks and commodity companies, as concerns about the worsening global economy countered speculation Japan will introduce more stimulus measures.HSBC Holdings Plc, Europe's largest bank, plunged 18 percent in Hong Kong after announcing share-sale plans. BHP Billiton Ltd., the world's biggest mining company, sank 2.3 percent in Sydney as oil and metals prices declined. Sony Corp., the world's No. 2 consumer-electronics maker, climbed 3.7 percent in Tokyo.
"We are still underweight on equities, waiting for signs of economic improvement," said Ivan Leung, a Hong Kong-based chief investment strategist at JPMorgan Private Bank, which has $400 billion in assets. "As painful as it is, we are going to see more fund-raising activities."
Five stocks dropped for every four that advanced on the MSCI Asia Pacific Index, which lost 0.3 percent to 72.29 as of 2:50 p.m. in Tokyo. The gauge has fallen 20 percent in 2009, extending last year's record 43 percent tumble, as recessions in the world's largest economies hurt earnings at companies from BHP to Toyota Motor Corp., the world's largest automaker.
Japan's Nikkei 225 Stock Average slipped 0.7 percent to 7,230.43 in Tokyo, paring a decline of as much as 2.6 percent. Hong Kong's Hang Seng Index retreated 1.5 percent. All markets open for trading declined, except South Korea, Taiwan, Singapore, the Philippines and Indonesia.
Futures on the Standard & Poor's 500 Index added 1.1 percent. The gauge tumbled 4.7 percent yesterday to its lowest close since October 1996. Europe's Dow Jones Stoxx 600 Index slid 5 percent to the lowest close in six years. The MSCI Emerging Market Index fell to the lowest level in 14 weeks as European Union leaders rejected pleas for aid to eastern Europe.
Record Loss
The deepening global recession, a third government rescue for Citigroup Inc. and dividend cuts at companies from General Electric Co. to JPMorgan Chase & Co. have dragged the MSCI World Index to three consecutive weeks of declines. The benchmark gauge was little changed today after yesterday's 4.9 percent tumble, which was the most since Dec. 1.
"We've already seen huge losses," said Masahiko Ejiri, fund manager at Tokyo-based Mizuho Asset Management Co., which oversees $36 billion in assets. "Many of the companies have already announced restructuring plans. So there's limited downside."
AIG yesterday said its fourth-quarter loss widened to $61.7 billion from $5.29 billion a year earlier. The results brought AIG's annual loss to almost $100 billion, prompting the U.S. to offer a package of equity, new credit and lower interest rates on existing loans.
Raising Funds
HSBC tumbled 18 percent to HK$46.80 following a one-day suspension. The company yesterday announced plans to raise 12.5 billion pounds ($17.7 billion) to bolster its capital as the bank's subprime losses cut full-year net income by 70 percent.
Its Hang Seng Bank Ltd. unit, which yesterday posted a 46 percent drop in second-half profit, fell 3.3 percent to HK$81.50. The lender had share-price targets cut at UBS AG, Credit Suisse Group AG and JPMorgan Chase & Co. Credit Suisse downgraded the stock to "neutral" from "outperform."
Standard Chartered Plc, the London-based lender that gets almost two-thirds of its revenue in Asia, dropped 2.5 percent to HK$69.70 before an announcement on its 2008 earnings today. Mitsubishi UFJ Financial Group Ltd., Japan's largest bank, lost 1 percent to 419 yen in Tokyo.
BHP Billiton fell 2.4 percent to A$27.29. Inpex Corp., Japan's biggest oil explorer, sank 5.8 percent to 589,000 yen.
Crude oil for April delivery tumbled 10 percent in New York yesterday, the most since Jan. 7, to $40.15 a barrel. A measure of six primary metals traded in London fell 2.2 percent, with nickel losing 4.5 percent.
Sony gained 4.4 percent to 1,733 yen, rebounding from a drop of 3.4 percent. Shares in Japan pared losses after Finance Minister Kaoru Yosano said the government can't ignore "excessive declines" in the nation's stock market. Yosano said on Feb. 26 that he ordered a study into ways to bolster equities.
"There are growing expectations the government will take measures to bolster Japan's stock market toward the end of this month," said Mitsushige Akino, who oversees about $615 million at Tokyo-based Ichiyoshi Investment Management Co.
