Japanese stocks fell after oil prices rose for a third day, spurring concern that higher energy costs will slow global economic growth. Exporters such as Toyota Motor Corp. and Fuji Photo Film Co. paced declines. ``The gain in oil prices is hurting sentiment, triggering some selling of exporters' stocks,'' said Shigeharu Shiraishi, who oversees the equivalent of $15 billion in assets as managing director at Societe Generale Asset Management (Japan) Co. in Tokyo. ``It will impact their earnings.'' Shiraishi favors stocks of steelmakers, which are benefiting from demand in China.
The Nikkei 225 Stock Average fell 0.6 percent to 11,224.49 as of 12:51 p.m. in Tokyo. The broader Topix index declined 0.8 percent to 1132.98, with computer-related shares and automakers accounting for more than two-fifths of its drop. Elsewhere in the region, South Korea's Kospi index gained led by Hyundai Motor Co., on expectations the automaker's long- term debt rating will be raised by Moody's Investors Service. China's stock indexes surged for a second day, reaching near one- month highs.
Morgan Stanley Capital International Inc.'s Asia-Pacific Index, which tracks 941 companies, fell 0.7 percent to 90.29. Benchmarks in Singapore and New Zealand rose, while Hong Kong, Taiwan and Australia fell. Toyota, the world's largest automaker by market value, shed 0.5 percent to 4,260 yen. Fuji Photo Film Co., the world's second- largest maker of camera film, dropped 2.5 percent to 3,580. The company gets a quarter of its sales from the U.S.
Oil Concerns
``Asian stock markets are closely related to movements in the price of oil, because most countries in the region are net oil importers,'' said Pieter Van Putten, managing director of APS Asset Management Ltd. in Singapore, who helps manage $2.5 billion in Asian equities. Crude oil for October delivery rose as much as 0.9 percent to $44.77 a barrel in after-hours electronic trading on the New York Mercantile Exchange. The contract traded at $44.74 a barrel recently in Asian trading. Oil prices climbed as Hurricane Ivan prompted Gulf of Mexico producers such as Royal Dutch/Shell Group to shut platforms in the biggest disruption of the region's output in at least two years. States along the Gulf are home to 50 percent of the U.S.'s refining capacity. Hyundai Motor, South Korea's largest automaker, surged 4.1 percent to 56,300 won. The automaker's long-term debt rating may be raised by Moody's Investors Service, said Kang Sang Min, an analyst at Tong Yang Investment Bank in Seoul. UBS AG also indicated it may raise valuations on the company's stock on higher sales of new models.
Hyundai
Hyundai Motor's affiliate Kia Motors Corp., the nation's second-largest automaker, rose 2.7 percent to 11,250. Oil producers and explorers such as Woodside Petroleum Ltd. and Santos Ltd. rose. Woodside Petroleum, Australia's second-biggest oil producer, added 1.4 percent to A$18.62. Santos Ltd., Australia's third- biggest, advanced 1.7 percent to A$7.01. TonenGeneral Sekiyu K.K., the Japanese refining unit of Exxon Mobil Corp., gained 0.4 percent to 953 yen. Kanematsu Corp. surged 7.8 percent to 180 yen. The Japanese trading company converted 10 billion yen ($91.1 million) of bonds into common stock as part of a plan to raise its capital ratio to 10 percent.
China Surges
China's stock indexes surged for a second day, reaching near one-month highs, on optimism about possible government support measures after Premier Wen Jiabao listed development of the capital markets as a key objective. The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares on the Shanghai stock exchange, rose 4 percent to 1352.20. The Shenzhen Composite Index, which tracks A and B shares on the Shenzhen stock exchange, gained 4.3 percent to 338.96. China's main stock benchmarks rebounded from five-year lows after Wen called on the government to take prompt measures to boost protection of investor interests and ensure steady development of the markets, in reports carried on the front pages of major securities newspapers yesterday. ///www.bloomberg.com