BLBG: Asia Stocks Drop as Materials Fall, China Banks Said to Halt Some Lending
Asian stocks fell as oil and metal prices dropped and after a report that China’s biggest lenders will temporarily stop issuing loans to developers.
Industrial & Commercial Bank of China Ltd. declined 3.9 percent in Shanghai after the China Real Estate Business reported that the four largest state banks won’t issue new loans to developers for the rest of the year. Newcrest Mining Ltd., Australia’s biggest gold producer, lost 2 percent in Sydney while Cnooc Ltd., China’s No. 1 offshore oil explorer, sank 2.2 percent in Hong Kong after commodity prices slumped on Nov. 12.
The MSCI Asia Pacific Index declined 0.4 percent to 131.65 as of 1:57 p.m. in Tokyo, with five stocks falling for every four that rose. Energy, material and financial stocks led declines with concerns about the sustainability of the global recovery intensifying as Ireland continued to resist pressure to accept European help with its sovereign debt.
“The market’s focus is firmly back on how secure Chinese growth is in the light of what’s come out onto the radar, and what policy measures are likely to be implemented in response,” said Tim Schroeders, who helps manage about $1 billion at Pengana Capital Ltd. in Melbourne. “We may well be headed for another period of consolidation as investors move to lock-in gains against a backdrop of rising uncertainty in the near term.”
China’s Shanghai Composite Index lost 0.7 percent, extending a 5.2 percent decline on Nov. 12. Japan’s Nikkei 225 Stock Average rose 0.9 percent as a report showed the nation’s economy grew at a faster-than-estimated pace in the third quarter.
Australia’s S&P/ASX 200 Index was little changed, while New Zealand’s NZX 50 Index added 0.5 percent in Wellington as third- quarter retail sales unexpectedly increased.
Futures on the Standard & Poor’s 500 Index gained 0.2 percent today. In New York, the index declined 1.2 percent to 1,199.21 on Nov. 12 amid concern China may raise interest rates to curb inflation.
To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
