Business | Markets
Asian stocks slump on recession concern
Asian stocks fell, led by raw-materials companies and consumer-electronics makers, as the deepening global recession stifles the outlook for earnings.
- Bloomberg
- Published: 08:29 December 16, 2008
Tokyo: Asian stocks fell, led by raw-materials companies and consumer-electronics makers, as the deepening global recession stifles the outlook for earnings.
The MSCI Asia Pacific Index declined 1.2 per cent to 87.04 as in Tokyo. Shares on the gauge trade at an average 5 times cash flow, half the level at the start of the year and cheaper than the 5.4 times of stocks included in the Standard & Poor's 500 Index.
MSCI's Asian gauge has slumped 45 per cent this year as Japan, the US and Europe entered the first simultaneous recession since the Second World War.
Japan's Nikkei 225 Stock Average dropped 0.7 per cent to 8,608.16. Most other benchmark indexes fell.
Hong Kong's Hang Seng Index lost 0.9 per cent. China Cosco Holdings Co. led declines after saying it may lose $577 million from wrong-way bets on shipping rates.
BHP Billiton Ltd., the world's biggest mining company, fell 2 per cent after saying it isn't immune to a slump in coal demand that led Macarthur Coal Ltd. to slash its profit forecast and suspend its dividend.
Macarthur plunged 21 per cent. JFE Holdings Inc., Japan's No. 2 steelmaker, lost 5.3 per cent after the Nikkei newspaper said Toyota Motor Corp. will request cheaper steel prices.
Sony Corp. slid 4.6 per cent after Credit Suisse Group reduced its rating.
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