Asian stocks decline
Tuesday, 26 June 2007
SINGAPORE, June 25 (Bloomberg): Asian shares fell, led by Sony Corp. and BHP Billiton Ltd., on concern figures this week will show a drop in US home sales, signaling declining demand in the region's largest export market.
``Stocks globally take a fall every time there's more bad news on US housing-related or lending data because there's a threat that this may spill over into other parts of the economy,'' said Eric Betts, a strategist at Nomura Australia Ltd. in Sydney. ``This wouldn't be good for companies that depend on the US consumer.''
Citic Securities Co. led the CSI 300 Index to its biggest drop in three weeks after China's central bank governor Zhou Xiaochuan said the country's shares may be overvalued and interest-rate increases couldn't be ruled out.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.4 per cent to 153.03 as of 7:15 p.m. in Tokyo. Japan's Nikkei 225 Stock Average lost 0.6 per cent. Taiwan Semiconductor Manufacturing Co. led the Taiex Index to a seven-year high after Citigroup Inc. raised its recommendation on the island's stock market. Thailand, India, Pakistan and Vietnam were the only other benchmarks in the region to rise.
Takeda Pharmaceutical Co. advanced after a study found the company's Actos drug might lower the risk of heart attack and death in diabetic patients with kidney disease.
US stocks dropped on June 22, sending the Standard & Poor's 500 Index to its worst week since early March. The near collapse of a Bear Stearns Cos. hedge fund spurred speculation investors will have to write down the value of securities containing subprime mortgages.
Sony, the world's biggest maker of game consoles, fell 1.4 per cent to 6,460 yen. BHP Billiton, the biggest mining company, lost 1.2 per cent to A$34.94. Hynix Semiconductor Inc., the world's second-largest memory chipmaker, dropped 2.9 per cent to 33,700 won.
A report later today from the National Association of Realtors may show sales of previously owned homes fell to an annual pace of 5.972 million in May from 5.99 million a month earlier, according to the median estimate of economists surveyed.
Tomorrow, the Commerce Department is forecast to report new homes sold at a 925,000 annual rate, down from April's 981,000 pace.
``Stocks globally take a fall every time there's more bad news on US housing-related or lending data because there's a threat that this may spill over into other parts of the economy,'' said Eric Betts, a strategist at Nomura Australia Ltd. in Sydney. ``This wouldn't be good for companies that depend on the US consumer.''
Citic Securities Co. led the CSI 300 Index to its biggest drop in three weeks after China's central bank governor Zhou Xiaochuan said the country's shares may be overvalued and interest-rate increases couldn't be ruled out.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.4 per cent to 153.03 as of 7:15 p.m. in Tokyo. Japan's Nikkei 225 Stock Average lost 0.6 per cent. Taiwan Semiconductor Manufacturing Co. led the Taiex Index to a seven-year high after Citigroup Inc. raised its recommendation on the island's stock market. Thailand, India, Pakistan and Vietnam were the only other benchmarks in the region to rise.
Takeda Pharmaceutical Co. advanced after a study found the company's Actos drug might lower the risk of heart attack and death in diabetic patients with kidney disease.
US stocks dropped on June 22, sending the Standard & Poor's 500 Index to its worst week since early March. The near collapse of a Bear Stearns Cos. hedge fund spurred speculation investors will have to write down the value of securities containing subprime mortgages.
Sony, the world's biggest maker of game consoles, fell 1.4 per cent to 6,460 yen. BHP Billiton, the biggest mining company, lost 1.2 per cent to A$34.94. Hynix Semiconductor Inc., the world's second-largest memory chipmaker, dropped 2.9 per cent to 33,700 won.
A report later today from the National Association of Realtors may show sales of previously owned homes fell to an annual pace of 5.972 million in May from 5.99 million a month earlier, according to the median estimate of economists surveyed.
Tomorrow, the Commerce Department is forecast to report new homes sold at a 925,000 annual rate, down from April's 981,000 pace.