Asian stocks declined, as concerns about the strength of the U.S. economy dented prospects for export earnings.
Japan's Nikkei 225 index fell back 137.13 points, or 1.4%, to end the day at 9,703.72, paced by Sekisui House Ltd. after the homebuilder was downgraded at Credit Suisse Group AG.
In Hong Kong, the Hang Seng Index lost 307.94 points, or 1.7%, to 17,776.66.
Honda Motor Co., which gets more than half its sales in North America, dropped 2.6% as the dollar traded near a two-week low against the yen. Mitsubishi UFJ Financial Group Inc. sank 2%, pacing declines among banks, after Standard & Poor’s cut credit ratings on 18 U.S. lenders. Rio Tinto Group, the world’s third-largest mining company, slumped 9% as it began a $15.2-billion U.S. share sale.
Sekisui House dropped 2.6% after Credit Suisse cut the homebuilder to "neutral" from "outperform," citing a 40% rally in the last three months that has reduced the attractiveness of the stock.
HSBC Holdings Plc, which gets 24% of its revenue in North America, lost 1.3% in Hong Kong.
Powerchip Semiconductor Corp., Taiwan’s largest memory-chip maker, dropped by the 6.8% daily limit to the lowest since March 24. The company said it talked to 98% of its bondholders to seek approval to reset the conversion price for its $158 million U.S. of convertible bonds.
Vegetable producer Chaoda Modern Agriculture (Holdings) Ltd. became the latest company in Hong Kong to sell stock, announcing plans to raise HK$1.74 billion ($224.5 billion U.S.). The shares plunged 16%.
Kirin Holdings Co. jumped 4.2% after the brewer said it developed an inspection system for auto parts that will allow manufacturers to detect defective products.
CHINA
The Shanghai index gained, led by China Shenhua Energy Co., which climbed 5.5% as the World Bank raised its growth forecast for the country’s economy.
Shenhua Energy, China’s No. 1 coal producer, gained 5.5% after the World Bank raised its growth forecast for China this year to 7.2% from 6.5%.
Industrial & Commercial Bank of China Ltd., the nation’s biggest listed lender, rose 2.6%. The Shanghai Composite has rallied 56% in 2009 on optimism Premier Wen Jiabao’s four-trillion yuan ($586-billion U.S.) of stimulus spending will revive growth in the world’s third-largest economy.
Stocks traded on the measure are valued at 28.34 times earnings, more than double the 12.9 times they fetched at their low in November.
Elsewhere:
China’s Shanghai Composite Index added 46.84 points, or 1.6%, to 3,057.43
Singapore’s Straits Times Index lost 34.25 points, or 1.5%, to 2,237.20
South Korea’s Kospi index slid 15.41 points, or 1.1%, to 1,375.76
Taiwan’s Taiex moved lower by 51.38 points, or 0.8%, to 6,144.53
New Zealand’s NZX 50 Index picked up 20.20 points, or 0.7% to 2,798.24
Australia’s S&P/ASX 200 subsided 12 points, or 0.3%, to 3,892.10
