Asian Stocks Have Biggest Drop in Three Weeks; Inpex, BHP Slide Feb. 8 (Bloomberg) -- Asian stocks had their biggest slide in three weeks after oil and metals prices dropped, triggering declines by Inpex Corp. and BHP Billiton.
``Investors are worried about the outlook for commodity prices as the drops were sudden and large,'' said Takeshi Yamaguchi, who helps manage about $674 million at Sumitomo Mitsui Asset Co. in Tokyo. The Morgan Stanley Capital International Asia Pacific Index lost 1.8 percent to 126.07 as of 1:58 p.m. in Tokyo, the biggest drop since Jan. 18. Measures of materials and energy stocks were the two worst performers among the index's 10 industry groups. Japan's Nikkei 225 Stock Average slid 1.9 percent to 16,397.07, its biggest decline in more than two weeks, and Australia's S&P/ASX 200 Index slumped 1.5 percent. None of the region's other stock indexes gained. Japanese exporters including Sony Corp. and Toyota Motor Corp. declined after the yen had its biggest increase in a month against the dollar, eroding their potential gains from converting U.S. sales. Concern the U.S. economy, the world's biggest, is cooling contributed to slides in Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. Crude-oil futures in New York yesterday plunged 3.1 percent to $63.09 a barrel, the lowest close since Jan. 5 and the biggest single-day decline since Dec. 16. Prices were recently at $62.94. Oil, Metals Inpex, Japan's largest oil explorer, fell 6.9 percent to 1.22 million yen. PetroChina Co., the nation's largest oil company, slid 4.5 percent to HK$7.50 and Woodside Petroleum Ltd., Australia's second- biggest oil and gas producer, lost 4.1 percent to A$41. Meanwhile, copper futures slid from records in London and New York after stockpiles rose to a 16-month high. Gold prices had their biggest decline in two years. The Reuters Jefferies CRB Index of 19 commodities yesterday fell 2 percent, the biggest drop since June 28. Before yesterday, the index had surged 22 percent in the past year as investors poured money into commodities. BHP Billiton, the world's biggest mining company, dropped 5.1 percent to A$24.38. Rio Tinto Group, the third-largest, lost 3.3 percent to A$72.59. Sumitomo Metal Mining Co., Japan's second-largest copper smelter, declined 4.7 percent to 1,620 yen. Jiangxi Copper Co., China's largest producer of the metal, slid 5.6 percent to 7.36 yuan. Newcrest Mining Ltd., Australia's biggest gold miner, declined 5.6 percent to A$25.18. The MSCI Materials Index, which tracks 117 mining companies and steelmakers, dropped 3.4 percent, making the biggest slide among the MSCI's 10 industry groups. Stronger Yen The yen recently traded at 117.86 per dollar in Tokyo, up from 117.95 late yesterday in New York. The currency yesterday had its biggest gain since Jan. 6 on speculation the Bank of Japan will signal it is getting closer to ending its policy of holding interest rates near zero percent to fight deflation. A weaker U.S. currency means Japanese exporters get less for their dollar-denominated sales while their products shipped to the U.S. become less competitive. Sony, the world's second-biggest consumer electronics maker, declined 2.4 percent to 5,590 yen. Toyota, the world's largest automaker by market value, fell 1.1 percent to 6,050 yen. The company's annual operating profit loses about 20 billion yen ($169 million) for every 1 yen that the currency strengthens against the dollar, according to Credit Suisse. Nissan Motor Co., Japan's second-largest automaker, fell 1.1 percent to 1,297 yen. Nissan's annual operating profit drops about 11.5 billion yen for every 1-yen gain against the dollar, according to Merrill Lynch & Co. U.S. Slowdown? Exporters outside of Japan slumped on concern the U.S. housing market will cool, curbing demand for the televisions, computers and furniture produced in Asia. Toll Brothers Inc., the largest U.S. builder of luxury homes, said 2006 sales will be less than its forecast. Samsung Electronics, South Korea's largest exporter, fell 2.3 percent to 690,000 won. Taiwan Semiconductor, the world's largest supplier of made-to-order computer chips, fell 2.2 percent to NT$63.6. ``There are growing concerns about a slowdown in the U.S. economy, which is negative for investor sentiment on exporters,'' said Lee Kun Hak, who helps manage about $600 million at CJ Asset Management Co. in Seoul. In Australia, BlueScope Steel Ltd. slumped 12 percent to A$6.57, the biggest percentage decline among the MSCI regional index's 1,034 constituents. Australia's largest steelmaker cut its full-year profit forecast by as much as 35 percent after prices for the alloy fell because of a glut in China. Boral Ltd., the largest seller of building materials in Australia, slipped 0.8 percent to A$8.69. First-half profit fell 8.8 percent as a housing slowdown outweighed growth in commercial construction and infrastructure projects. ``Softness in steel and building materials was expected, but perhaps not to this extent,'' said Paul Xiradis, who helps manage $2.3 billion at Ausbil Dexia Ltd. in Sydney. ``The market overall has moved up in accordance with expectations for earnings, so any company that doesn't meet them will take a bath.'' To contact the reporter for this story: Chen Shiyin in Singapore at [EMAIL PROTECTED] Last Updated: February 8, 2006 00:02 EST ------------------------ Yahoo! Groups Sponsor --------------------~--> Try Online Currency Trading with GFT. Free 50K Demo. Trade 24 Hours. Commission-Free. http://us.click.yahoo.com/RvFikB/9M2KAA/U1CZAA/zMEolB/TM --------------------------------------------------------------------~-> Yahoo! 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