“Most Asian stocks dropped on concern Cyprus’s bank-restructuring plan will be used for other European nations, imperiling depositors and bondholders, and on a report China is stepping up property curbs.
Konica Minolta Holdings Inc. (4902), a lensmaker that gets 28 percent of sales from Europe, sank 6 percent in Tokyo. Country Garden Holdings Co., the Chinese developer controlled by billionaire Yang Huiyan, fell 1.7 percent on a report that banks have started to control the scale of loans for mainland real estate developments. Hong Kong’s Hang Seng Index (HSI) rallied, led by exporters, in the final hour of trading as European stocks opened higher.
The MSCI Asia Pacific Index was little changed 135.55 as of 7:08 p.m. in Tokyo, with five companies falling for every four that rose. Japanese shares pared losses earlier as new Bank of Japan Governor Haruhiko Kuroda said he’ll consider extending bond maturities.
“Cyprus doesn’t help in the sense that reminds us the EU leadership is basically improvising from solution to solution,” said Mikio Kumada, a Hong Kong-based global strategist for LGT Capital Management, which oversees more than $25 billion. “The Chinese government doesn’t have a lot of room to relax because if it does now, it will just create a bigger mess for itself. It’s stuck in that sense.”
The MSCI Asia Pacific Index gained 4.9 percent this year through yesterday on improving economic data from the U.S. and speculation that Japan will deploy more stimulus.
The Asian benchmark traded at 15 times estimated earnings on average, compared with 14 times for the Standard & Poor’s 500 Index and 12.6 times for the Stoxx Europe 600 Index.
BOJ Governor
Japan’s Topix Index slid 0.3 percent, paring declines as Kuroda told lawmakers he’ll consider buying more government bondswith longer maturities and vowed to consider scrapping a self-imposed rule limiting the scale of asset buying. The Nikkei 225 Stock Average slipped 0.6 percent….”
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