Asian stocks fell for a second day, led by materials and consumer companies, as Japanese bond risk at a record and signs of declining profit countered optimism that U.S. stimulus measures will ease the financial crisis.
The Nikkei 225 edged down 0.3% or 23.09 points to 7945.94 in Tokyo. Kobe Steel Ltd. tumbled 13% in Tokyo before saying it may have given improper political contributions. Orix Corp., Japan’s biggest non-bank financial company, slumped 8.9% on a lower profit forecast. Nissan Motor Co. jumped 7.3% after saying it will cut 20,000 jobs to help restore profit.
Kyushu Electric Power Co., the monopoly power supplier to Japan’s southwestern island of Kyushu, gained 1.1%, on speculation fuel costs will drop after oil traded near a three-week low. Tohoku Electric Power Co. added 1.2%
Hong Kong's Hang Seng Index zoomed up 111.58 points or 0.8% to 13,880.64. Li & Fung Ltd., the biggest supplier to Wal-Mart Stores Inc., rose 8.2% in Hong Kong after saying it is increasing its market share.
CHINA
China’s main index climbed as inflation cooled, fanning speculation the central bank may lower interest rates. Consumer prices rose 1% in January from a year earlier, the statistics bureau said today, after gaining 1.2% in December.
Producer prices fell 3.3% after a 1.1% decline. Lunar New Year celebrations last month may have prevented a bigger decline in the inflation rate as the economy slumped because of plummeting export demand.
IOOF Holdings Ltd. and Australian Wealth Management Ltd., slumped more than 6% as funds under management plunged.
Elsewhere:
China’s Shanghai Composite Index picked up another 30.08 points, or 1.3% to 2,326.76
Singapore’s Straits Times Index regained 20.95 points of what it lost Monday, or 1.3%, to 1,703.29
Taiwan’s Taiex Index advanced 31.51 points or 0.7%, to 4,526.10
South Korea’s Kospi lost 3.82 points or 0.3% to 1,198.87
New Zealand’s NZX 50 Index stepped back 16.51 points or 0.6% to 2,750.05.
Australia’s S&P/ASX 200 Index subsided 19.90 points or 0.6% to 3,498.70.
