Asian stocks fall after oil rises to record
Thursday, 22 November 2007
SINGAPORE, Nov 21 (Bloomberg): Asian stocks slumped, led by Toyota Motor Co., after a decline in the dollar pushed the price of crude oil to almost $100 a barrel and the Federal Reserve cut its forecast for US. economic growth.
Toyota fell the most in more than a week and Honda Motor Co. had its biggest drop in three months as the yen strengthened beyond a two-year high against the dollar. Air China Ltd. sank on concern rising fuel costs will erode earnings. Commonwealth Bank of Australia slid after Freddie Mac, the second-biggest US. mortgage-finance company, reported a record loss.
"A spate of bad news related to the US. subprime-loan issue has made the outlook uncertain," said Kazuyuki Terao, who helps oversee $1.7 billion at RCM Japan Ltd. in Tokyo. "With the chances of a US. economic slowdown on the rise, there are concerns that high commodity prices could squeeze corporate profits."
The MSCI Asia Pacific Index lost 1.8 per cent to 154.71 at 5:23 p.m. in Tokyo, with all 10 industry groups falling. Japan's Nikkei 225 Stock Average slid 2.5 per cent to 14,837.66, its lowest close since July 2006, and Hong Kong's Hang Seng slumped 4.2 per cent, on course for its steepest monthly drop in a decade. All Asian markets fell except New Zealand and Pakistan.
Toyota fell the most in more than a week and Honda Motor Co. had its biggest drop in three months as the yen strengthened beyond a two-year high against the dollar. Air China Ltd. sank on concern rising fuel costs will erode earnings. Commonwealth Bank of Australia slid after Freddie Mac, the second-biggest US. mortgage-finance company, reported a record loss.
"A spate of bad news related to the US. subprime-loan issue has made the outlook uncertain," said Kazuyuki Terao, who helps oversee $1.7 billion at RCM Japan Ltd. in Tokyo. "With the chances of a US. economic slowdown on the rise, there are concerns that high commodity prices could squeeze corporate profits."
The MSCI Asia Pacific Index lost 1.8 per cent to 154.71 at 5:23 p.m. in Tokyo, with all 10 industry groups falling. Japan's Nikkei 225 Stock Average slid 2.5 per cent to 14,837.66, its lowest close since July 2006, and Hong Kong's Hang Seng slumped 4.2 per cent, on course for its steepest monthly drop in a decade. All Asian markets fell except New Zealand and Pakistan.