Tokyo: Asian stocks fell for a second day as declines among banks and mining companies overshadowed speculation Japan will take more steps to weaken the yen.
China Construction Bank Corp. slid 2 per cent in Shanghai on concern Chinese lenders will have to boost their capital adequacy ratios. BHP Billiton Ltd., the world's largest mining company, lost 1.8 per cent in Sydney after commodity prices declined. Toyota Motor Corp. advanced 1.7 per cent in Tokyo as Prime Minister Naoto Kan pledged "decisive measures" on the yen following intervention yesterday in the currency market.
‘Rapid movements'
More than two stocks fell for each one that advanced in the MSCI Asia Pacific Index, which lost 0.7 per cent to 123.14 as of 7.34 pm in Tokyo. Japan's Nikkei 225 Stock Average declined 0.1 per cent, erasing a 1.1 per cent climb, even after Kan said his government won't tolerate "rapid movements" of the yen.
"There's still a great deal of uncertainty," Tim Schroeders, who helps manage about $1 billion (Dh3.6 billion) at Pengana Capital Ltd. in Melbourne, said. "The jury's out as to whether the yen measures being put in place are successful or not. Anyone looking at a possible investment in China may sit on the sidelines a bit longer as various measures are implemented." China's Shanghai Composite Index slumped 1.9 per cent, the most since August 25. Hong Kong's Hang Seng Index dropped 0.2 per cent. Australia's S&P/ASX 200 Index sank 1.2 per cent. South Korea's Kospi index declined 0.7 per cent.
Futures on the Standard & Poor's 500 Index lost 0.2 per cent. The index rose 0.4 per cent Wednesday in New York. In Shanghai, China Construction Bank declined 2 per cent to 4.52 yuan, while Bank of Communications Co. slumped 2.8 per cent to 5.60 yuan.
Chinese banking regulators may require the nation's biggest lenders to boost their capital adequacy ratios to as high as 15 per cent by the end of 2012.
