Wednesday, May 16, 2012

Asian stocks market may 17 2012

Asian stocks market may 17 2012 : Asian stocks fell, and a regional benchmark index headed for its biggest loss this year, as Greece's move to call new elections increased concern the country will leave the euro and derail efforts to contain the region's debt crisis.

Hong Kong's Hang Seng Index and Korea's Kospi index fell more than 3 percent, entering so-called corrections after retreating more than 10 percent from recent highs. Nissan Motor Co, which depends on Europe for about 16 percent of its sales, slid 2.2 percent in Tokyo. BHP Billiton Ltd, the world's largest mining company, declined 4.1 percent in Sydney after metal prices fell. Toll Holdings Ltd, an Australian trucking company, sank 15 percent after forecasting lower full-year profit.

The MSCI Asia Pacific Index slid 2.6 percent to 114.13 at 8:38 pm in Tokyo, headed for its biggest loss since November. The gauge is poised to close more than 10 percent below this year's high on Feb 29, a retreat some investors call a correction.

"The Asian market is caught up in global events, as overseas investors avoid risky assets and drop their overall positions," said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co. "The Greece issue is the bottleneck. Until we see the election results, it's hard to actively take a stance."

Japan's Nikkei 225 Stock Average declined 1.1 percent even as the nation's machinery orders fell less than economists forecast in March from the previous month. South Korea's Kospi Index retreated 3.1 percent. Australia's S&P/ASX 200 Index dropped 2.4 percent as a survey showed that the nation's consumer confidence was little changed from its lowest level this year.

Hong Kong's Hang Seng Index retreated 3.2 percent, while the Shanghai Composite Index on the Chinese mainland fell 1.2 percent.

Futures on the Standard & Poor's 500 Index rose 0.2 percent after falling 0.5 percent on Wednesday. The index slid 0.6 percent in New York on Tuesday amid concern a political impasse in Greece will destabilize austerity plans in Europe.

Greek leaders said a second election will be held after political gridlock left the nation without a government since elections on May 6. Greeks have withdrawn as much as 700 million euros ($893 million) from the nation's banks, President Karolos Papoulias told party leaders.

German Chancellor Angela Merkel and French President Francois Hollande said they will consider taking measures to spur economic growth in Greece as long as voters there committed to the austerity demanded to stay in the euro.

Nissan dropped 2.2 percent to 752 yen ($9.34) in Tokyo, while Esprit Holdings Ltd, a clothier that depends on Europe for most of its sales, retreated 5.5 percent to HK$13.30 ($1.71) in Hong Kong.

"As the pressure builds in Europe, you need to see another mini crisis before policymakers will step in, and we're not there yet," said Andrew Pease, Sydney-based chief investment strategist for the Asia-Pacific region at Russell Investment Group, which manages about $150 billion. "Markets and economies in Asia are at the mercy of the export story."

Mining companies declined after the London Metal Exchange Index of prices for six industrial metals including copper and aluminum slid 0.6 percent on Tuesday.

BHP slid 4.1 percent to A$32.49 in Sydney, while Jiangxi Copper Co, China's biggest producer of the metal, fell 6 percent to HK$15.98 in Hong Kong.

Toll Holdings slumped 15 percent to A$4.73 ($4.70) in Sydney, the steepest drop in the MSCI Asia Pacific Index, after saying earnings before interest and tax will be A$400 million to A$420 million in the 12 months ending in June compared with A$436 million a year earlier.

Sinofert Holdings Ltd, a Chinese fertilizer producer, dropped 5.9 percent to HK$1.44, the lowest price since December 2005. Japanese regional lenders Hiroshima Bank Ltd sank 9.1 percent to 280 yen and Hokuhoku Financial Group Inc declined 9.1 percent to 120 yen.

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