Asian stocks fell, with a regional index set for its biggest weekly slide in almost three months. Exporters such as Samsung Electronics Co. and Toyota Motor Corp. declined as oil prices trading near $55 a barrel heightened concern global economic growth will slow. ``Oil prices are making investors cautious,'' said Takashi Miyazaki, a senior strategist at UFJ Partners Asset Management Co. in Tokyo, which manages the equivalent of $8.6 billion in equities. ``Exporters' stocks are going to take a hit on concerns profit growth will slow as demand wanes.''
He declined to name his stock recommendations. Morgan Stanley Capital International's Asia-Pacific Index, which tracks more than 900 companies, shed 0.2 percent to 89.97 at 1:51 p.m. in Tokyo. The benchmark has slumped 2.5 percent this week, and is set for its biggest weekly drop since the five days ended July 23. Crude oil, which yesterday reached a record $54.88 in New York, rose 2.4 percent this week. In Japan, the Nikkei 225 Stock Average lost 0.2 percent to 11,007.77, while the Topix index shed 0.3 percent to 1106.34. Benchmarks in China had the biggest percentage losses in Asia, with the Shanghai Composite Index, which tracks the larger of the nation's two stock markets, sliding 2 percent. All other indexes declined, apart from those in Australia, Hong Kong, Singapore, Thailand and India. The Taiwan stock benchmark was little changed.
Slowing Growth
The MSCI regional index retreated for a fourth day after reaching a five-month high on Oct. 11. All 10 industry groups in the benchmark are set for weekly losses on concern that higher fuel costs will chip away at incomes and leave consumers with less money to spend on cars and digital electronics. Oil prices, which are heading for a fifth weekly advance, have rallied 72 percent from a year ago. Consumer spending in the U.S., Asia's largest export market, will increase at a 3.1 percent annual pace this quarter, almost a percentage point less than estimated in the third quarter, according to economists surveyed by Bloomberg News. The impact of higher energy prices on consumer spending has already affected earnings at some Asian exporters. South Korea's Samsung Electronics today reported third- quarter profit rose at its slowest pace in three quarters, suggesting demand for its chips and flat screens is cooling. The stock shed 0.7 percent to 441,000 won. Canon Inc., the world's third-largest maker of digital cameras, declined 0.8 percent to 5,230 yen. Hon Hai Precision Industry Co., which makes personal computers for Hewlett-Packard Co., dropped 0.8 percent to NT$118.
Energy Costs
News Corp., which has U.S. businesses including the New York Post newspaper and the 20th Century Fox film studio, lost 1.2 percent to A$11.14. Esprit Holdings Ltd., which plans to add 15 shops in North America, shed 0.8 percent to HK$39.60. A 26 percent jump in U.S. gasoline prices in the past year, combined with consumer concerns over wages, jobs and terrorism, have hurt spending, Lee Scott, the chief executive of Wal-Mart Stores Inc., told investors earlier this month. Eight of the 10 biggest contributors to the MSCI regional index's drop were Japanese stocks. Toyota, the world's biggest automaker by value, fell 0.5 percent to 4,110 yen. Honda Motor Co., Japan's No. 3 carmaker, slid 1.1 percent to 5,460 yen. General Motors Corp., the world's largest automaker, yesterday cut its 2004 profit forecast after posting its first loss from North American car manufacturing in six years. The shares had their biggest one-day drop in two years.
Oil Stocks Gain
A measure tracking the performance of Asian oil-related stocks had the biggest percentage gain among the 10 industry indexes that make up the MSCI Asia-Pacific Index. Santos Ltd., Australia's biggest natural gas producer, led the advance on optimism record-high oil prices will boost earnings. Its stock jumped 4.9 percent to A$7.66. BHP Billiton, the world's biggest mining company, gained 0.8 percent to A$14.08. CNOOC Ltd., China's biggest offshore oil and gas producer, added 0.6 percent to HK$4.175. ``Oil just keeps marching ever upwards and people are now factoring in $60 a barrel,'' said Paul Trainor, who helps manage A$120 million at Direct Portfolio Services in Sydney. ``It will stay up for a lot higher and a lot longer.'' ///www.bloomberg.com