By Rocky Swift and Jonathan Burgos April 27 (Bloomberg) -- Asian stocks declined, sending the stock benchmark index in Shanghai to a seven-month low, and commodities fell on signs governments in the region are trying to stem overheating asset prices. The MSCI Asia Pacific Index lost 0.2 percent to 127.01 at 4 p.m. in Tokyo. The South Korean won weakened to a one-week low after the government said recent gains were “excessive.” Copper and oil slipped while gold climbed as speculation a bailout for Greece won’t stem the nation’s fiscal woes prompted investors to seek the safest assets. The Stoxx Europe 600 decreased 0.3 percent to 269.31 at 8 a.m. in London. Futures for the Standard & Poor’s 500 were little changed. China Vanke Co., the nation’s biggest developer, said first-quarter profit plunged 53 percent from the previous three months amid government measures to prevent a property bubble. German Chancellor Angela Merkel said she won’t release funds for Greece until it has a “sustainable” plan to reduce its deficit. “Concerns about potential delays in financial aid for Greece as well as further monetary tightening in China continue to dampen investor sentiment,” said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Management Co., which holds $65 billion in assets. The MSCI Asia Pacific Index retreated after yesterday’s 1.6 percent jump yesterday, its biggest gain since March 17. Stocks in the index trade at 16.1 times estimated earnings, compared with 15.2 times for the S&P 500, according to data compiled by Bloomberg. The S&P fell 0.4 percent in regular trading yesterday. Valuations ‘Expensive’ “Valuations are still expensive,” Tomita said. “We need to see more earnings improvement.” China’s Shanghai Composite Index skidded 2.3 percent and is set for the lowest close since Sept. 30. Hong Kong’s Hang Seng Index dropped 1.2 percent. The won slid 0.6 percent to 1,110.15 per dollar, retreating from near a 19-month high of 1,102.85 yesterday, according to data compiled by Bloomberg. It touched 1,114.45, the weakest level since April 20. The South Korean government will take measures to counter herd behavior in the currency market, Kim Ik Joo, director- general at the Ministry of Strategy and Finance, said by phone today. Policy makers can try to influence exchange rates by buying or selling currencies. Japan’s currency traded at 125.47 against the euro in Tokyo trading from 125.73 in New York yesterday. The euro was at $1.3368 per dollar from $1.3383 yesterday. There will be no decision on aid for Greece until the International Monetary Fund works out a plan of cuts with the government in Athens, Merkel told reporters yesterday in Berlin. Germany will assist Greece only after it agrees to take “tough” measures for the next several years, she said. Germany, Greece “There is concern that the German government may delay the extension of financial aid for Greece,” said Akane Vallery Uchida, a currency strategist at Royal Bank of Scotland Group Plc in Tokyo. “This led to resumed selling of the euro.” Elpida Memory Inc., Japan’s biggest maker of computer memory, lost 1.8 percent to 2,033 yen, while Hynix Semiconductor Inc. slumped 3.5 percent to 27,500 won in Seoul. The spot price for the benchmark dynamic random access memory chip sank 0.7 percent yesterday to the lowest level since March 22, according to Dramexchange Technology Inc. CSL Ltd., the world’s second-biggest maker of treatments made from blood, fell 4.2 percent to A$32.50 after Credit Suisse AG cut the stock to “neutral” from “outperform,” citing the impact from U.S. health-care reforms. CSL tumbled 7.3 percent on April 23 when it last traded, after larger rival Baxter International Inc. cut its 2010 earnings forecast. China Developer China Vanke lost 1.5 percent to 7.6 yuan. The Shenzhen- based developer yesterday said first-quarter profit reached 1.13 billion yuan ($165.5 million), down 53 percent from the three months ended Dec. 31. Concerns that government measures to cool the property market would hurt home demand have dragged Vanke’s shares 29 percent lower this year. China has ordered higher mortgage rates and larger down-payment ratios since property prices jumped 11.7 percent in March, the most since data began in 2005. PetroChina Co. and Jiangxi Copper Co., the nation’s biggest oil and copper producers, dropped more than 2.7 percent as prices of crude and the metal declined. Inpex Corp., Japan’s largest oil explorer, sank 1.3 percent to 690,000 yen. Oil fell for a second day, dropping below $84 a barrel in New York, as the dollar gained and analysts forecast that U.S. crude supplies increased, signaling that fuel demand in the world’s biggest energy user may be slow to recover. Commodities Fall Oil dropped 1.1 percent yesterday as the greenback advanced on concern the Greek bailout plan faces hurdles. A stronger dollar limits investor need for commodities to hedge against inflation. U.S. crude inventories probably rose 1 million barrels last week, according to analysts surveyed before an Energy Department report tomorrow. Copper for three-month delivery dropped 1.2 percent to $7,720 per metric ton, declining for the first time in three days. The cost of protecting Asia-Pacific bonds from non-payment increased, according to traders of credit-default swaps. The Markit iTraxx Australia index rose 3.5 basis points to 87 basis points in Sydney, according to ICAP Plc prices. The risk benchmark is heading for the highest since March 22, when it was 91.5 basis points, according to CMA DataVision prices. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan increased 1 basis point to 99 basis points in Singapore, Barclays Plc prices show. That index is on track for the highest since April 22, according to CMA DataVision. The Markit iTraxx Japan index climbed 1 basis point to 95 in Tokyo, according to Morgan Stanley. To contact the reporters for this story: Rocky Swift in Tokyo at rswift5@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net

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