Asian stocks fell, with a regional benchmark index headed for its first loss in six days, as the Organization for Economic Cooperation and Development said failure to prevent the so-called fiscal cliff in the U.S. would increase the risk of a global recession.
The Nikkei 225 Index in Japan tailed off 114.95 points, or 1.2%, to 9,308.35
In Hong Kong, the Hang Seng index dropped 135.05 points, or 0.6%, to 21,708.96
Rio Tinto Group, the world’s second-biggest iron ore exporter, dropped 1.9 percent in Sydney, leading losses among companies with earnings closely tied to economic growth. Komatsu Ltd., which gets about a quarter of its sales in the U.S., fell 2.1%. Hulic Co. tumbled 12% after the Japanese real-estate operator said it plans a share sale.
Miner Rio Tinto lost 1.9% in Sydney, while Aluminum Corp. of China Ltd., the nation’s biggest producer of the metal, slid 1.5% in Hong Kong. Copper prices in London fell for the first time in five days. Raw-materials shares posted the largest decline among 10 industry groups on the MSCI Asia Pacific index.
Exporters retreated. Komatsu, the world’s second-largest maker of construction and mining equipment, slid 2.1% in Tokyo. Li & Fung Ltd., a supplier of toys and clothes to Wal-Mart Stores Inc., retreated 0.5% in Hong Kong. Wal-Mart, the world’s largest retailer, fired a supplier that made apparel at a Bangladesh factory where more than 100 people died in the country’s deadliest ever blaze at a garment facility.
Hulic slumped 12% in Tokyo after the real-estate company said it will raise as much as 37 billion yen ($415 million U.S.) selling shares.
Japanese shippers fell after Kawasaki Kisen Kaisha Ltd., Japan’s third-largest shipping company, said it will postpone an expansion of its commodity-vessel fleet due to a global glut cutting cargo rates. Kawasaki Kisen lost 4.6%, Nippon Yusen K.K., the biggest, dropped 4.5% and Mitsui O.S.K. Lines declined 4.9%.
CHINA
The Shanghai CSI 300 Composite Index fell 21.48 points, or 1%, to 2,129.16
Guangzhou R&F Properties Ltd., a property company in the southern Chinese city, rose 6% after Deutsche Bank AG said the company is among its top picks.
In other markets
In Singapore, the Straits Times Index fell 0.14 points to 3,011.77
Korea’s Kospi index dipped 12.42 points, or 0.7%, to 1,912.78
Taiwan’s Taiex Index gained 4.73 points, or 0.1%, to 7,434.93
New Zealand’s NZX 50 eked ahead 2.55 points, or 0.1%, to 4,012.16
Australia’s ASX Index slipped 9.52 points, or 0.2%, to 4,447.31
