“Asian stocks fell after Chinese companies posted slumping profit and Societe Generale SA said the country’s earnings growth with come to a halt this year.
Gome Electrical Appliances Holding Ltd. plunged 21 percent in Hong Kong after China’s No. 2 electronics retailer missed profit estimates. Hong Kong’s Hang Seng China Enterprises Index of Chinese companies listed in the city dropped for the 10th day in 11 days. Li & Fung Ltd. (494), the world’s biggest supplier of clothes and toys to retailers, slid 5.2 percent in Hong Kong on a plan to sell shares.
The MSCI Asia Pacific Index dropped 0.4 percent to 127.46 as of 5:18 p.m. in Tokyo, having lost 1.2 percent this month. The measure advanced 12 percent this year through yesterday, headed for the biggest quarterly gain since the three months ended September 2009.
“We’re seeing a modest correction following recent gains,” said Yoji Takeda, who oversees about $1.1 billion at RBC Investment Management (Asia) Ltd. in Hong Kong. “We’ve seen some negative earnings, but overall the economy is still growing at a healthy speed, so I’m not too worried.”
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