Japan's Nikkei 225 Stock Average fell, led by companies that rely on overseas sales such as Canon Inc. and Honda Motor Co., after a private survey showed U.S. consumer confidence dropped for a second month in September. The Nikkei lost 0.2 percent to 10,796.29 at 1:35 p.m. in Tokyo. The broader Topix index shed 0.1 percent to 1089.76. Both benchmarks are set for a ninth consecutive day of losses. ``Concerns that the momentum in the global economic recovery is losing steam are weighing on sentiment,'' said Yoshinori Nagano, who helps manage $51 billion at Daiwa Asset Management Co. in Tokyo. Investors have ``little reason to add right now.''
Construction machinery makers such as Komatsu Ltd. gained after Caterpillar Inc. increased its 2004 sales forecast on growing demand for construction equipment and trucks. Elsewhere in Asia, Australia's S&P/ASX 200 Index was headed for its highest ever close, climbing 0.5 percent. Miners such as BHP Billiton and Alumina Ltd. advanced after an industry consultancy said global demand will bolster prices of aluminum. The Morgan Stanley Capital International Asia-Pacific Index, which tracks the performance of more than 900 stocks, added 0.2 percent to 87.65. Stock benchmarks in Indonesia and the Philippines fell. India's key stock index rose, while the others in the region were little changed. South Korea and Hong Kong are shut today for holidays. Malaysia's Kuala Lumpur Composite Index advanced. Moody's Investors Service said it may raise the nation's foreign currency rating.
Japan Slumps
In Japan, the Nikkei and the Topix have slumped 11 percent and 10 percent in dollar terms, respectively, the biggest declines among 60 benchmarks tracked by Bloomberg News worldwide. Canon, the world's No. 3 maker of digital cameras, lost 0.8 percent to 5,100 yen. Honda, which gets 90 percent of operating profit from North America, shed 1.1 percent to 5,270 yen.
Fanuc Ltd., Japan's largest industrial robot maker, shed 1.7 percent to 5,830 yen. It gets 60 percent of sales from abroad. The Conference Board's index fell to 96.8 this month from 98.7 in August amid concerns about hiring and rising oil prices. Americans were less confident about current economic conditions, even as the outlook for the next six months improved, the New York-based not-for-profit business research group said. The result was lower than all but two of the 68 estimates from economists in a Bloomberg News survey.
`Faring Well'
Komatsu, the world's No. 2 maker of construction machinery, gained 1.3 percent to 684 yen. Its bigger rival, U.S.-based Caterpillar, said sales this year will increase 25 percent to 30 percent, up from a July prediction of 25 percent growth. Hitachi Construction Machinery Co., Japan's second-biggest maker of construction machinery, added 1.7 percent to 1,292 yen. ``Machinery makers are faring well despite concerns over a global economic slowdown,'' said Daiwa Asset's Nagano. Many investors will refrain from buying or selling large lots of shares before the release of Japan's industrial production report tomorrow and the central bank's Tankan survey of business confidence on Oct. 1, said Teruhisa Ishikawa, a manager at Mizuho Investors Securities Co. in Tokyo. Production increased 0.5 percent from July, according to a Bloomberg News survey, while the Bank of Japan report may show confidence among the nation's large manufacturers had the smallest improvement in more than a year.
`Still Cheap'
In Australia, an index that measures the performance of materials stocks, which includes mining shares such as BHP, accounted for more than half of the benchmark's advance. BHP, the world's biggest miner, advanced 3.5 percent to A$14.42. The company yesterday agreed to sell an additional $3.2 billion of iron ore to four Chinese steelmakers. Alumina, a partner with Alcoa Inc. in a venture with a quarter of the world's alumina production capacity, gained 2 percent to A$5.64. Demand for aluminum will exceed production by 600,000 tons this year as U.S. and Chinese buyers seek more of the product, according to Bloomsbury Minerals Economics. Alumina is the raw material used to produce aluminum. ``Mining stocks are still cheap when you consider the demand for commodities coming out of China, in particular,'' said Paul Xiradis, who helps manage the equivalent of $1.2 billion in equities, including BHP shares, at Ausbil Dexia in Sydney.
Malaysia Rating
Malaysia's Kuala Lumpur Composite Index rose 0.79 to 846.25. Malaysian International Shipping Corp., the world's biggest owner of tankers carrying liquefied natural gas, rose 0.8 percent to 12.70 ringgit. Public Bank Bhd., the fourth-largest lender by assets, gained 0.8 percent to 6.35 ringgit. Genting Bhd., Asia's biggest publicly traded casino, added 1.2 percent to 16.80 ringgit. The rating company said it may raise the country's Baa1 foreign currency rating because of the continuing strengthening of current account surpluses and foreign reserves. ``It will improve sentiment for the Malaysian market as a whole,'' said Aveline Chan, who helps manage $600 million at Commerzbank Asset Management Asia Ltd. in Singapore. Her fund may invest more in the Malaysian market, she said. ////www.bloomberg.com