Asian Stocks Fall for Fifth Day on Greece Concern, Italy Risks
2012-05-15 04:54:48.453 GMT By Kana Nishizawa and Yoshiaki Nohara
May 15 (Bloomberg) -- Asian stocks fell as the political impasse in Greece added to speculation the nation will leave the euro union and Moody’s Investors Service downgraded Italian banks ahead of a report that may show Europe’s economy shrank.
Nippon Sheet Glass Co., a glassmaker that counts Europe as its No. 1 market, slumped 1 percent in Tokyo after saying it may continue to suspend some production in Europe this year on slumping demand. BHP Billiton Ltd., the world’s largest mining company, declined 2.2 percent in Sydney after metal prices fell. China Overseas Land & Investment Ltd., the mainland’s biggest developer by market value, fell 1 percent in Hong Kong after a report Shanghai tightened home-purchase restrictions.
“Investors would think if Greece goes, maybe Portugal, Spain and Italy go,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “It would further erode confidence in Europe. While it might be positive news, I think we may go through a period of fairly intense uncertainty if they end up leaving.”
The MSCI Asia Pacific Index slid 0.8 percent to 117.04 as of 1:45 p.m. in Tokyo. Almost three stocks declined for each that rose on the measure, which is headed for its fifth successive day of losses and lowest close since Jan. 16. The gauge is less than 1 percent away from closing 10 percent below this year’s high on Feb. 29, a level some investors call a correction.
Nikkei, Kospi
Japan’s Nikkei 225 Stock Average fell 0.9 percent and Australia’s S&P/ASX 200 Index slid 0.7 percent. South Korea’s Kospi Index retreated 1 percent. Hong Kong’s Hang Seng Index added 0.1 percent and China’s Shanghai Composite Index fell 0.8 percent.
The Asian gauge gained 3.7 percent this year through yesterday, compared with a 6.4 percent increase by the S&P 500 and a 1.2 percent advance by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 12.1 times estimated earnings on average yesterday, compared with 12.7 times for the S&P 500 and 10.2 times for the Stoxx 600.
Futures on the Standard & Poor’s 500 Index rose 0.2 percent today. The gauge fell 1.1 percent in New York yesterday after Greek President Karolos Papoulias failed to form a unity government, extending the nation’s post-election political gridlock. German Finance Minister Wolfgang Schaeuble said Europe has done its “utmost” to rescue the financially stricken country, limiting any further room for leniency after about 240 billion euros ($308 billion) of aid pledges.
Italian Banks
UniCredit SpA and Intesa Sanpaolo SpA were among 26 Italian banks whose credit ratings were cut by Moody’s, citing weakened earnings and the country’s economic outlook. The downgrade followed Moody’s decision on Feb. 13 to cut the credit rating of Italy and five other nations, including Spain, on concern over the euro region’s ability to deal with the debt crisis.
Nippon Sheet Glass dropped 1 percent to 95 yen in Tokyo. The company said one of two furnaces at a German float plant will remain out of operation until at least the end of this year. Further cuts in float-glass capacity in Europe is under review, the company said.
BHP fell 2.2 percent to A$33.70 in Sydney, while Korea Zinc Co., a non-ferrous metal smelter, retreated 1.9 percent to 330,500 won in Seoul after the London Metal Exchange Index of prices for six industrial metals including copper and aluminum fell 1.9 percent yesterday.
China Overseas Land fell 1 percent to HK$15.90 in Hong Kong, while Soho China Ltd., a developer in central Beijing and Shanghai, declined 2.6 percent to HK$5.55 after the China Securities Journal said single residents with Shanghai registration are no longer allowed to buy a second home, citing city’s real-estate trading centers.
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Shares fell to multi-month lows as investors sought refuge from the political turmoil that is fuelling fears of Greece's exit from the euro and threatening to undo progress made so far to solve the euro zone's debt crisis. U.S. stocks fell on Monday as investors dealt with the one-two punch of worsening political upheaval in the euro zone and the possibility that China's economy may be softening more than previously thought.
The euro slipped to a four-month low against the dollar as a political stalemate in Greece stoked fear the country may renege on bailout pledges made to international creditors and exit the currency bloc.
FOREX-Euro dips to 4-month low as Greek impasse fans exit worry
TOKYO, May 15 (Reuters) - The euro slipped to a four-month low against the dollar on Tuesday as political impasse in Greece raised worry the country may renege on bailout pledges and exit the currency bloc.
"At the moment, I think that Greece's exit from the euro zone is a risk scenario rather than my main scenario. But what you have to consider is, whether Greece is going to stay or not, it is only the euro zone economy that is expected to hit recession this year," said Daisuke Karakama, market economist at Mizuho Corporate Bank.
U.S. soybean futures rose after two straight days of losses, driven by fund liquidation of long positions and a risk-off phase that propelled the July oilseed contract to the lowest level in six weeks on Monday.
Corn, soy planting pace ahead of analysts view
U.S. farmers seeded corn and soybeans faster than analysts were expecting last week and their momentum was expected to continue amid calls for good weather around the Midwest.
Farms in main Argentina grains province to strike
Farmers in Argentina's main agricultural province will call a strike this week against a proposed tax increase, but the planned five-day halt in crop sales should have little impact on exports.
China May soy imports seen at 6-mth high - Mofcom
China, the world's top soy buyer, is likely to import 5.63 million tonnes of the oilseed in May, the commerce ministry estimated on Monday, up 15 percent from actual arrivals of 4.88 million tonnes in April.
Rains hold back Argentine soy harvest pace
Argentina's 2011/12 soybean harvest slowed down in the last week because of rain in some areas, the Agriculture Ministry said on Friday in its latest weekly crop progress report.
POLL-US crude stocks seen higher, Cushing stocks up
U.S. crude oil stockpiles were forecast higher for the eighth straight week last week as stockpiles at Cushing, Oklahoma, likely climbed to a new record, a preliminary Reuters poll ahead of weekly inventory reports showed on Monday.
Obama administration not opposed to LNG exports
The Obama administration is not opposed to exporting liquefied natural gas but will depend on an official analysis to guide its decision on whether to allow more gas export projects to proceed, a White House official said on Monday.
Brent crude futures fell towards $111 a barrel as Greece's political and economic turmoil deepened and worries that the debt-laden country could leave the euro zone sparked a sell-off in dollar-denominated commodities.
Peru's Volcan sees 2012 silver production rising
Volcan, Peru's top silver producer, expects its silver output to rise to 22.5 million ounces from 21 million ounces in 2011, the company said at the International Gold Symposium on Monday.
London copper hit fresh four-month lows as investors steered clear of riskier assets, put off by a slowing Chinese economy and Greece's increasingly complicated political woes.
Gold dropped to its lowest since late December as the euro sank against the U.S. dollar on worries that a worsening debt crisis in Greece could spill over into its neighbours and threaten the existence of the single currency.
METALS-LME copper hits 4-month low on Greece fears
SINGAPORE, May 15 (Reuters) - London copper hit fresh four-month lows on Tuesday as investors steered clear of riskier assets, put off by a slowing Chinese economy and Greece's increasingly complicated political woes.
"There will be continued uncertainty until there's a resolution in Greece, but so much of this hinges upon the political cycle which is very hard to pick from a market perspective," said Matt Fusarelli, analyst at Australia-based consultancy AME Group.
PRECIOUS-Gold falls to 4-1/2 month low on Greece risks
SINGAPORE, May 15 (Reuters) - Gold dropped to its lowest since late December as the euro sank against the U.S. dollar on worries that a worsening debt crisis in Greece could spill over into its neighbours and threaten the existence of the single currency.
"Jewellers have been buying a lot. At the moment supply is a bit tight for immediate delivery, although it's not that the market is short of physical gold bars right now," said a physical dealer in Singapore.
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