Asian stocks fluctuated, as concern of mounting losses at financial companies countered gains by automakers and consumer-related companies. Nomura Holdings Inc. fell 3.9 percent in Tokyo after Nikkei English News reported the brokerage may report a full-year loss of about 700 billion yen ($7.2 billion) tomorrow. Foster’s Group Ltd., Australia’s biggest beer and winemaker, surged 6.6 percent as a bid by Kirin Holdings Co. for rival Lion Nathan Ltd. fueled takeover speculation. Toyota Motor Corp., the world’s largest automaker, climbed 2.1 percent after Goldman Sachs Group Inc. recommended investors buy the stock. The MSCI Asia Pacific Index added 0.3 percent to 88.41 at 12:54 p.m. in Tokyo. It earlier fell 0.3 percent. The gauge has climbed 25 percent from a more than five-year low on March 9 as optimism grew that government and central bank policies will pull the global economy out of recession. “The market is looking for a fresh catalyst following the recent rally,” said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co., which manages $350 billion. “I don’t think we will see a sharp drop as a lot of investors are still waiting to buy on retracements.” Japan’s Nikkei 225 Stock Average fell 0.4 percent to 8,694.62. Hong Kong’s Hang Seng Index added 0.7 percent and China’s Shanghai Composite index slipped 1 percent. Most markets in Asia declined except South Korea, Australia, Malaysia and Thailand. Mitsui & Co., Japan’s second-largest trading house, lost 5 percent after missing its earnings forecast. PCCW Ltd., Hong Kong’s biggest phone carrier, slumped 12 percent as Chairman Richard Li abandoned his $2.1 billion bid. China Cosco Holdings Ltd., the world’s biggest operator of dry-bulk ships, dropped 2.7 percent in Hong Kong after posting a second-half loss. U.S. Sales Futures on Standard & Poor’s 500 Index lost 0.3 percent. The gauge erased a rally to finish down 0.8 percent in New York yesterday after Morgan Stanley reported a first-quarter loss of 57 cents a share, sending financial stocks lower. Analysts expected a loss of 8 cents. Nomura slumped 3.9 percent to 575 yen on the Nikkei report. The company said it wasn’t the source of the story. “Investors are still concerned about credit risk and companies with weak financial health will inevitably underperform in the market,” said Hisakazu Amano, head of fund management at Tokyo-based T&D Asset Management Co., which oversees about $39 billion. Toyota gained 2.1 percent to 3,840 yen after Goldman Sachs upgraded the stock to “buy” from “neutral.” Toyota, Honda Motor Co. and Nissan Motor Co. will likely boost their U.S. market share by 7 percentage points through 2010, Kota Yuzawa, an analyst at Goldman wrote in a report. Nissan, Japan’s third- largest carmaker, rose 1.8 percent to 517 yen. Takeover Bids Honda added 1.5 percent to 2,755 yen. The company said today it’s considering an investment in Pioneer Corp., which makes car audio and navigation systems. Pioneer advanced 9.6 percent to 353 yen. Foster’s surged 6.4 percent to A$5.16 as Kirin, Japan’s biggest beverage maker, offered to buy Lion Nathan, Australia’s second-largest brewer. Trading in Lion Nathan was halted. Kirin gained 1.7 percent to 1,096 yen. The takeover proposal was made last night and a purchase amount hasn’t been decided, said Makoto Ando, a Kirin spokesman. Kirin holds 46 percent of Lion Nathan, Bloomberg data show. Mitsui dropped 5 percent to 1,055 yen. The company said it missed its full-year profit forecast by 42 percent and it won’t pay a year-end dividend after writing down asset values. PCCW slumped 12 percent to HK$3.61. Li abandoned his bid for the company after the Hong Kong’s Court of Appeals blocked the deal. PCCW parent Pacific Century Regional Developments Ltd. tumbled 11 percent to 17 Singapore cents. China Cosco lost 2.7 percent to HK$6.17. The company posted a loss in the second half as rates plummeted on China’s waning demand for commodities, forcing the company to delay ship orders.

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