http://www.bloomberg.com/apps/news?pid=20601087&sid=awXQE_hHfZ28&refer=home
Asian Stocks Fall on Economic Growth Outlook; Samsung, DBS Drop By Chen Shiyin and Kyung Bok Cho Jan. 2 (Bloomberg) -- Asian stocks fell, with a benchmark index set for its biggest drop in two weeks, as a South Korean growth forecast and a contraction in Singapore's economy raised concern a decline in global demand may curb the region's exports. Samsung Electronics Co. dropped after South Korea cut an estimate for economic expansion amid the likelihood of weaker overseas sales. DBS Group Holdings Ltd., Singapore's largest bank, slid after the economy shrank for the first time in 18 quarters. Hon Hai Precision Industry Co. fell after growth in U.S. holiday Internet sales slowed. ``The negative impact of outside risks on Asian economies will be stronger this year,'' said Kwon Hyeuk Boo, who helps manage the equivalent of $3.2 billion at Daishin Investment Trust Management Co. in Seoul. The stock markets' ``moves reflect the surrounding environment.'' The MSCI Asia Pacific excluding Japan Index lost 1.1 percent to 524.20 as of 2:38 p.m. in Hong Kong, its biggest decline since Dec. 17. Five stocks dropped for every two that advanced. Japan and New Zealand are shut today. The MSCI benchmark, which was little changed yesterday, jumped 33 percent in 2007, while a regional index that includes Japanese shares rose 12 percent, the smallest annual gain since 2002 on concern U.S. economic growth will falter amid widening credit-market losses. South Korea's Kospi index slid 2.3 percent. Singapore's Straits Times Index dropped 1.2 percent. Regional benchmarks extended losses after Sri Lankan officials said a bomb targeting an army bus in the capital Colombo killed at least four people. `Added Risks' ``The latest bombing is a reminder of political tensions scattered around the world,'' said Ashley Kang, who helps manage $1.7 billion at IBT Securities Co. in Taipei. ``Such radical actions added risks to stock investments.'' U.S. stocks fell on the last day of trading in 2007. The Standard & Poor's 500 Index dropped 0.7 percent, cutting its annual gain to 3.5 percent, after a four-year, 61 percent advance. Samsung Electronics, South Korea's largest exporter, lost 2.2 percent to 544,000 won, while Shinhan Financial Group Co., South Korea's second-biggest bank, dropped 2.8 percent to 52,000 won. The $887 billion economy will expand at an ``upper 4 percent'' pace in 2008, down from a previous forecast of 5 percent, Finance Minister Kwon Okyu said. Meanwhile, overseas shipments advanced 15.5 percent in December from a year earlier, slowing from a 17.1 percent increase the previous month, the Commerce Ministry said today. That was lower than the median estimate of 20.2 percent in a Bloomberg News survey of economists. DBS, Venture In Singapore, gross domestic product shrank an annualized 3.2 percent after adjusting for inflation, the trade ministry said in a statement today. Economists were expecting a 3.1 percent gain. DBS Group fell 1.4 percent to S$20.42, its fourth straight drop. Venture Corp., Singapore's biggest publicly traded electronics maker for customers including Hewlett-Packard Co., slid 0.6 percent to S$12.72. Exporters dropped elsewhere after ComScore Inc. said growth of online spending in the U.S. from Nov. 1 through Dec. 27 slowed to a 19 percent increase. The sales gain trailed last year's 26 percent and was the smallest advance since the Reston, Virginia-based Internet researcher began reporting the figures in 2002. Hon Hai, the world's largest contract manufacturer of electronics, lost 3.7percent to NT$194.50. Li & Fung Ltd., a Hong Kong-based supplier to Wal-Mart Stories Inc., slid 3.2 percent to HK$30.50. `Good News' Centro Properties Group, facing a Feb. 15 deadline to refinance A$3.9 billion ($3.4 billion) of debt, jumped after saying it's looking for buyers of its assets. The stock jumped 3 percent to A$1.04, following a 82 percent slump in its shares last month. Melbourne-based Centro said it is ``seeking expressions of interest'' from potential buyers and will consider offers for all of the company or assets including its Australian and U.S. funds as it struggles to refinance debt. ``After the debt scare last year, the market will always enjoy a bit of good news about Centro on the first trading day of a new year,'' said Richard Wallace, who helps manage $138 million at Wallace Funds Management in Sydney. BHP Billiton Ltd., the world's largest mining company and Australia's biggest oil producer, added 0.4 percent to A$40.30. Woodside Petroleum Ltd., Australia's No.2 oil and gas producer, climbed 1.1 percent to A$50.95. Crude oil for February delivery rose as much as 0.7 percent to $96.60 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $96.39 recently. Meanwhile, South Korean builders rose on speculation a plan by President-elect Lee Myung Bak to build a 550-kilometer (342- mile) cross-country waterway will revive the domestic construction industry. Daelim Industrial Co., South Korea's fifth-largest builder, jumped 5 percent to 188,000 won, the highest close since Nov. 7. Hyundai Engineering & Construction Co., South Korea's second- biggest overseas contractor, gained 5.9 percent to 93,400 won.
