By James Regan and Yasuhiko Seki June 4 (Bloomberg) -- Asian stocks declined for the third time in four days, led by mining companies, following warnings from the two biggest copper producers that China’s plans to slow its economy will reduce demand. Japanese sovereign bonds gained. The MSCI Asia Pacific Index fell 0.5 percent to 113.19 at 3 p.m. n Tokyo. Futures on the Standard & Poor’s 500 Index were 0.1 percent lower, after the gauge yesterday posted its best close in a week. Japan’s five-year bonds gained, pushing yields to the lowest level since August 2003. Yields dropped 1.5 basis points to 0.39 percent. BHP Billiton Ltd., the world’s largest mining company, slumped 2.5 percent after Freeport-McMoran Copper & Gold Inc. and Codelco, the world’s two largest copper producers, said China’s plans to rein in its economy threaten to reduce demand for the metal. Policy makers in the world’s third-largest economy have ordered lenders to set aside more deposits as reserves three times this year and raised mortgage rates. “Chinese economic growth remains a significant risk in the eyes of investors, particularly given the uncertainty surrounding other regions,” said Tim Schroeders, who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. Japan’s bonds rose, pushing five-year yields down to the lowest in almost seven years, as Europe’s debt crisis boosted demand for the relative safety of government debt. “Domestic banks are buying mid-term notes, as they accumulate cash and struggle to expand lending,” said Akitsugu Bandou, senior economist in Tokyo at Okasan Securities Co. “They can’t buy riskier assets amid the sovereign crisis. They don’t have a choice but to buy bonds.” New Prime Minister The Nikkei 225 Stock Average closed down 0.2 percent after the nation’s lower house of parliament voted in favor of naming Finance Minister Naoto Kan to be the next prime minister, following Yukio Hatoyama’s resignation two days ago. The appointment will ease investor anxiety over the world’s largest public debt and boost stocks, said Naoki Kamiyama, Deutsche Bank AG’S chief equity strategist in Tokyo. About three stocks declined for every two that rose on the MSCI Asia Pacific Index, with a measure of materials producers posting the biggest drop of 10 industry groups. Australia’s S&P/ASX 200 Index fell 1 percent, the worst performance among the region’s benchmark stock indexes. Copper rebounded from the lowest price in two weeks after a slump recent losses, stemming from demand concerns in China, spurred buying. Three-month futures for the metal rose as much as 1.2 percent to $6,605 a metric ton on the London Metal Exchange. The contract tumbled as much as 2.9 percent to $6,477.50 a ton yesterday, the lowest price since May 20. To contact the reporter for this story: James Regan in Hong Kong Jregan19@bloomberg.net;

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