Asian stocks fell on concern a two- week slump in the dollar against regional currencies and slowing growth in China and the U.S. will curb exporters' earnings. Toyota Motor Co. and Samsung Electronics Co. led declines. ``The biggest concern in the market is that growth prospects globally are dimming and that's prompting people to reduce equity holdings,'' said Koshi Kumagai, who helps manage $1.8 billion at HSBC Asset Management (Japan) K.K. in Tokyo. Morgan Stanley Capital International's Asia-Pacific Index, which tracks more than 900 companies, shed 1 percent to 89.84 as of 1:55 p.m. in Tokyo. The dollar has fallen against nine out of 12 major Asian currencies in the past two weeks.
Oil-related stocks such as BHP Billiton and PetroChina Co. dropped after crude oil futures fell in New York. Mobile phone- related shares such Kyocera Corp. and Chartered Semiconductor Manufacturing Ltd. declined after Motorola Inc. said revenue this quarter may fall short of analysts' estimates. All regional benchmarks declined, except for the Philippine Stock Exchange Composite Index. Japan's Nikkei 225 Stock Average lost 1.4 percent to 10,908.94, while the Topix index fell 1 percent to 1097.08, with all 33-industry groups sliding. The yen rose to as high as 108.28 a dollar in New York trading, its strongest since July 20, and recently traded at 108.68. A stronger yen may lower the value of Japanese companies' overseas revenue because they get less for their dollar- denominated sales.
`Ripple Effect'
``The yen's surge against the dollar could be taken as a reflection of weakness in the U.S. and that raises concerns of U.S. slowdown having a ripple effect on Japan's growth,'' said Naohiko Sasaki, who helps manage $30.6 billion as co-head of investments at Kokusai Asset Management Co. in Tokyo. Toyota, Asia's biggest automaker, fell 1.2 percent to 4,090 yen. The company's annual operating profit drops 20 billion yen ($184 million) for every 1 yen gain against the dollar, according to Credit Suisse First Boston Japan Inc.
The Kospi tumbled 2.3 percent to 836.35. The won rose 0.2 percent to 1,142.75 against the dollar, its biggest gain since Oct. 14. It has strengthened 0.8 percent in the past two weeks. Samsung Electronics, South Korea's biggest exporter, fell 1.5 percent to 432,000 won. Hyundai Motor Co., the nation's No. 1 carmaker, shed 3 percent to 57,700 won.
`Bad News'
Exports, which account for about 40 percent of South Korea's gross domestic product, are slowing as high oil prices and interest rate increases in the U.S. cool overseas demand for cars, computer chips and cell phones. Shipments last month rose 24 percent, their smallest gain in 10 months. ``Korea's economy largely relies on exports and the rise in the won is bad news for the market,'' said Lee Ju An, who overseas about $780 million worth of shares at Daehan Investment Trust Management Co. in Seoul. Rising oil prices this year and weaker-than-expected hiring the past few months will also restrain economic growth in the U.S. in the fourth quarter and into 2005, according to a Bloomberg survey of economists. Growth in China, Asia's second-largest economy after Japan, probably slowed in the third quarter because of lending restrictions to cool investments, according to economists surveyed by Bloomberg News. ``All eyes are on China's GDP report this week and the concerns over slowing growth will keep investors away from the China beneficiaries like steel,'' said Norihiro Fujito, a senior strategist at Mitsubishi Securities Co. in Tokyo.
Oil Shares
BHP Billiton, Australia's biggest-oil producer, declined 2.2 percent to A$13.61. PetroChina, China's No. 1 oil producer, shed 1.2 percent to HK$4.125. Woodside Petroleum Ltd., Australia's second-largest oil and gas company, shed 2.5 percent to A$19.59. GS Holdings Corp., which owns half of Asia's third-biggest oil refinery, slipped 3.5 percent to 23,700 won. Crude for November delivery fell 0.7 percent to $53.29 a barrel on the New York Mercantile Exchange yesterday. It was $55.33 on Oct. 18, the highest since futures began trading in 1983.
Kyocera, Japan's largest maker of cellular handsets using a format developed by Qualcomm Inc., declined 1.6 percent to 7,960 yen. Murata Manufacturing Co., the world's biggest maker of ceramic capacitors used to regulate electricity in cell-phone handsets, lost 1.5 percent to 5,130. Chartered, the world's third-largest provider of made-to- order chips for customers such as Motorola, dropped 1.9 percent to S$1.02. Benq Corp., Taiwan's largest mobile-phone maker that counts Motorola among its clients, fell 2.1 percent to NT$32.80.
`Another Reminder'
Shares of Motorola, the world's second-largest maker of handsets, slumped 5.9 percent in U.S. after-hour trading. Fourth- quarter sales will be $9.3 billion to $9.6 billion, the company said. Analysts surveyed by Thomson Financial predicted revenue of $9.52 billion on average. Motorola also reported third-quarter sales that trailed analysts' forecasts. ``Motorola missing estimates is another reminder that we could get more of these softer results and that's going to keep investors away from buying,'' said Teruhisa Ishikawa, a manager at Mizuho Investors Securities Co. in Tokyo. ///www.bloomberg.com