“Asian stocks fell, with the regional benchmark index set for its biggest drop in a month, led by mining companies as commodities slumped on concern weaker global economic growth will crimp demand for raw materials.
BHP Billiton Ltd. (BHP), the world’s biggest miner, sank 4.3 percent in Sydney. LG Display Co., which supplies touch screens for Apple Inc., dropped 4.8 percent in Seoul after audio-chip maker Cirrus Logic Inc. reported an inventory glut that suggests iPhone sales may fall short of expectations. Softbank Corp., Japan’s third-largest wireless carrier, lost 1.6 percent as a rival’s bid for Sprint Nextel Corp. gained shareholder support.
The MSCI Asia Pacific Index slipped 1.1 percent to 135.89 as of 5:08 p.m. in Tokyo, heading for its biggest drop since March 18. All 10 industry groups fell on the gauge, which is set for its third decline in four days after China’s economy expanded less than economists estimated. The International Monetary Fund this week cut its global growth forecast as Europe sinks deeper into recession.
“Weak corporate earnings results and renewed concerns about the global economy saw traders switch to a risk-off mode,” said Matthew Sherwood, Sydney-based head of markets research at Perpetual Investments, which manages about $25 billion.
The MSCI Asia Pacific Index (MXAP) advanced 6.2 percent this year through yesterday amid signs the U.S. economy is recovering and as Japanese shares rallied on optimism theBank of Japan will step up efforts to stimulate the economy. Shares on the gauge traded at 13.8 times average estimated earnings compared with 14 for the Standard & Poor’s 500 Index and 12.3 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg…..”
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