Asian stocks fell, led by banks and commodity companies, on skepticism that the proposed U.S. bank rescue will revive credit markets and the world’s biggest economy. HSBC Holdings Plc, a bank that gets a quarter of its revenue in the U.S., dropped 4.8 percent in Hong Kong after Treasury Secretary Timothy Geithner said he’s still “exploring a range of different structures” to bail out banks. BHP Billiton Ltd., the world’s largest mining company fell 2.9 percent on concern oil and metals demand will drop. Neptune Orient Lines Ltd. slumped 2.4 percent in Singapore after forecasting a loss. “Investors are disappointed with the lack of clarity on the U.S. bank-rescue plan,” said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank, which manages about $27 billion of Asian assets. “We will see more earnings downgrades going into the next few months and that’s going to drag down Asian stocks at least till the end of the first half.” The MSCI Asia Pacific Index that excludes Japan fell 1.9 percent to 232.34 at 1:44 p.m. in Hong Kong. The gauge that includes Japan has fallen 7.3 percent this year, extending 2008’s record 43 percent decline as the world’s biggest economies sank into recession. Japan’s stock market, the world’s second largest, is closed today for a holiday. Hong Kong’s Hang Seng Index slumped 3.2 percent, leading most of the region’s benchmark indexes lower. China’s Shanghai Composite Index gained 1.8 percent on optimism the government will take steps to boost domestic demand as the nation’s exports slump. Posco, Asia’s third biggest steelmaker, fell 3.6 percent in Seoul after forecasting a “challenging” first quarter. Rio Tinto Ltd., BHP’s smaller rival, rose 5.4 percent on speculation Aluminum Corp. of China, the nation’s biggest producer of the metal, may invest as much as to $20 billion. Bank Rescue Plan Futures on the U.S. Standard & Poor’s 500 Index added 0.4 percent today. The gauge slumped 4.9 percent yesterday as Geithner pledged up to $2 trillion in financing for programs aimed at spurring new lending and addressing banks’ toxic assets. The plan includes limits on bank dividends and acquisitions. “It’s almost as if the market seems to be unhappy with any solution that doesn’t involve full nationalization of the banks,” said San Francisco-based Robert Horrocks, who helps manage about $4.7 billion including Asian equities at Matthews International Capital Management LLC. Governments around the world are stepping up efforts to revive global growth that the International Monetary Fund predicted two weeks ago will grind almost to a halt this year. China’s exports fell 17.5 percent in January, the most in almost 13 years, a government report today showed. South Korea and Taiwan also reported declining exports last month. Lower Confidence The world economy faces a “second wave” of the financial crisis unless governments adopt larger spending plans, Koyo Ozeki, head of Asia-Pacific credit research in Tokyo at Pacific Investment Management Co., wrote in a report today. HSBC Holdings fell 4.8 percent to HK$59.95 in Hong Kong. Australia & New Zealand Banking Group Ltd. fell 3.5 percent to A$12.02 in Sydney as a Westpac Banking Corp. and Melbourne Institute index released today showed consumer confidence slumped in February amid rising unemployment and falling property prices. BHP Billiton slid 2.9 percent to A$32.37 as metal and oil prices fell in New York, with copper sliding 1.6 percent and crude oil slumping 5.1 percent. Oil futures rose 1.8 percent to $38.22 a barrel in after-hours trading. Posco fell 3.2 percent to 378,000 won in Seoul on its forecast for the quarter and after reporting an operating profit margin of about 7 percent in January. The company had a margin of 17 percent last quarter and 21 percent for all of 2008. Falling Demand Samsung Electronics Co., the world’s No. 1 memory-chip maker, fell 0.6 percent to 517,000 won. The stock paced declines among technology companies amid concern demand for computer components and consumer electronics products made in Asia will decline. Neptune, Southeast Asia’s biggest container carrier, slumped 2.4 percent to S$1.21 after forecasting a full-year 2009 loss as the global recession damps demand for transporting Asian-made goods. The company reported a net loss of $149 million in the fourth-quarter, its first in six years. Rio Tinto rose 6.2 percent to A$52. Aluminium Corp. of China is in talks to buy bonds that will convert into Rio shares and purchase stakes in Rio mines, a person with knowledge of the matter told Bloomberg News. An announcement is planned for Feb. 12 when Rio publishes its annual earnings, the person said.

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