Asian stocks market down may 30 2012

Asian stocks market down may 30 2012 : Asian stocks dropped and the euro fell toward its lowest level in almost two years as Spanish borrowing costs rose and China damped speculation of large-scale stimulus to revive economic growth.

The MSCI Asia Pacific Index slipped 0.7 percent as of 9:41 a.m. in Tokyo, where the Nikkei 225 Stock Average (NKY) declined 0.8 percent. The euro slid 0.3 percent to $1.2470 and the Australian dollar weakened 0.3 percent. Crude for July delivery fell 0.1 percent to $90.64 a barrel in New York.

Spain’s 10-year bond yields rose to the highest level since November yesterday as the Bank of Spain said the economy will sink further into a recession, fueling concern Europe’s debt crisis will worsen. In China, the official Xinhua News Agency said the government has no plan to introduce stimulus measures of the scale during the global financial crisis.

“The Chinese authorities do see downside risk to growth this year,” said Dwyfor Evans, a Hong-Kong based strategist at State Street Global Markets, part of State Street Corp., which has $1.9 trillion under management. “They will continue addressing the slowdown but it’s hard to assess if it will be enough.”

The MSCI Asia Pacific Index is headed for a 9.9 percent decline this month, which would be the biggest loss since May 2010, amid signs of a deepening slowdown in China and as European leaders pressure Greece to meet bailout terms and stay in the euro. Greece will hold an election next month that may settle the matter.

The euro has lost 5.7 percent this month, headed for its biggest monthly decline since September, and touched $1.2461 yesterday, the weakest level since July 1, 2010. Spain backtracked on a plan to use government debt instead of cash to bail out Bankia, as Prime Minister Mariano Rajoy struggles to shore up the nation’s lenders without overburdening public finances.

“It’s all about what happens with Spain and their banks, and what could be the scenario in terms of how much money they ask for,” said Mary Nicola, a currency strategist at BNP Paribas SA in New York. “But there’s still that Greek shadow.”

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