By Shani Raja and Norie Kuboyama April 16 (Bloomberg) -- Asian stocks fell, dragging the MSCI Asia Pacific Index from a 20-month high, after China announced measures to cool its property market, U.S. jobless claims unexpectedly rose and commodity prices dropped. China Overseas Land & Investment Ltd. slumped 4.9 percent in Hong Kong after the Chinese government raised down-payment ratios for some home purchases. Sony Corp., which gets 23 percent of its sales in the U.S., sank 1.3 percent in Tokyo. BHP Billiton Ltd. lost 0.9 percent in Sydney after oil and copper prices retreated in New York. Kasikornbank Pcl slumped 4.7 percent in Bangkok amid concern political clashes in Thailand will undermine economic growth. The MSCI Asia Pacific Index slumped 0.9 percent to 127.90 as of 2:15 p.m. in Tokyo, leaving it down 0.1 percent for the week. China reporting an 11.9 percent increase in first-quarter economic growth and better-than-estimated U.S. earnings drove the index yesterday to its highest level since Aug. 6, 2008. “There are some concerns about China overheating,” said Hiroshi Morikawa, a strategist at MU Investments Co., which manages about $13.5 billion in Tokyo. “People’s expectations for U.S. employment have been too high.” China’s Shanghai Composite Index sank 0.9 percent and Hong Kong’s Hang Seng Index dropped 1.3 percent. Japan’s Nikkei 225 Stock Average fell 1.6 percent. South Korea’s Kospi index lost 0.6 percent. Australia’s S&P/ASX 200 Index decreased 0.5 percent. Foxconn International Holdings Ltd. retreated 4.2 percent in Hong Kong after posting worse-than-estimated second-half profit. In Sydney, Sigma Pharmaceuticals Ltd. and OZ Minerals Ltd. slumped more than 2 percent on ratings downgrades. ‘More Forceful’ Futures on the Standard & Poor’s 500 Index declined 0.5 percent. The gauge rose 0.1 percent yesterday as optimism that earnings are growing overshadowed the jobless claims report. Companies from Intel Corp. to United Parcel Service Inc. this week reported profit that beat analyst estimates. The U.S. earnings season continues next week with Microsoft Corp., American Express Co. and Coca-Cola Co. reporting their latest quarterly results. Combined profit for S&P 500 companies will increase 30 percent in the first quarter from a year earlier, according to analyst estimates compiled by Bloomberg. China-related equities fell after the country’s cabinet yesterday increased down-payment ratios for some home purchases, saying “more forceful” steps are needed to cool speculation. China’s economic growth in the first quarter was the fastest pace in almost three years. Harsh Measures China Overseas Land, controlled by the country’s construction ministry, slumped 4.9 percent to HK$15.48 in Hong Kong. Guangzhou R&F Properties Co., the biggest real-estate company in the southern Chinese city, tumbled 4.5 percent to HK$11.96. “These are the harshest measures targeting the property market we have seen recently,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “It adds to concerns that economic growth will be hurt given property’s big contribution to the economy.” In Tokyo, Komatsu Ltd., a maker of construction machinery that counts China as its fastest-growing market, lost 1.2 percent to 1,920 yen. Sharp Corp., a Japanese company seeking to expand its share in China’s mobile-phone market, declined 1.8 percent to 1,227 yen. Companies reliant on U.S. sales fell after a government report showed the number of Americans filing claims for jobless benefits increased in the week ended April 10. Economists surveyed by Bloomberg had projected a decline. Sony lost 1.6 percent to 3,355 yen. Honda Motor Co., which gets 44 percent of its sales in North America, dropped 1.7 percent to 3,210 yen in Tokyo. ‘Too Much Risk’ Foxconn, the world’s No. 1 contract maker of mobile-phones, slumped 4.2 percent to HK$7.83 in Hong Kong. The company’s second-half profit of $57.3 million missed the $85 million median estimate in a Bloomberg survey. “People are a bit cautious about having too much risk on the table,” said Angus Gluskie, who oversees $300 million at White Funds Management Pty in Sydney. “The China figures yesterday were sufficiently strong that China’s going to have to act firmly to bring growth levels under sufficient control to prevent an inflationary breakout.” The MSCI Asia Pacific Index has climbed 13 percent from its low this year on Feb. 8 amid growing confidence in the global recovery. The rally has lifted the average price of companies in the MSCI gauge to 16.5 times estimated profit, compared with 15.5 times for the S&P 500. Macarthur Coal Takeover According to separate reports this month, Chinese manufacturing activity expanded at a faster pace in March, South Korean exports increased last month more than economists estimated, and a gauge of U.S. service industries rose at the fastest pace in more than three years. BHP Billiton, the world’s biggest mining company, retreated 0.9 percent to A$43.51 in Sydney, as copper and oil futures in New York fell for a second day. Rio Tinto Group, the third biggest mining company, slipped 0.3 percent to A$79.85. Woodside Petroleum Ltd., Australia’s second-biggest oil and gas producer, declined 1.6 percent to A$46.76. Santos Ltd., the third largest, dropped 1.8 percent to A$14.41. In Wellington, New Zealand Oil & Gas Ltd. sank 3.1 percent to NZ$1.56. OZ Minerals, a copper and gold producer, fell 2.8 percent to A$1.23 after RBC Capital cut the stock to “sector perform” from “outperform.” Sigma Pharmaceuticals Ltd., a drugmaker that reported a loss last month, tumbled 8.3 percent to 49.5 Australian cents after Citigroup Inc. analysts cut its rating to “sell” from “hold.” Thailand Protests Thailand’s SET Index slumped 2.3 percent, the biggest decline in Asia after Finance Minister Korn Chatikavanij said yesterday that economic growth may be shaved by one or two percentage points, even without taking into account the impact on consumer confidence. At least 23 people died after anti- government protesters clashed with soldiers last weekend. Kasikornbank, Thailand’s No. 3 lender by assets, sank 4.7 percent to 86 baht. Advanced Info Service Pcl, the nation’s biggest mobile-phone operator, slumped 4.8 percent to 75 baht. “The instability is creating a massive risk premium,” said Nader Naeimi, a strategist in Sydney at AMP Capital Investors, which oversees about $90 billion globally. “We don’t think valuation is compelling to have that kind of risk. The Thai share market will continue to struggle given the instability.” Among stocks that rose, Macarthur Coal Ltd. climbed 8.3 percent to A$16.55 after its third-biggest shareholder, Posco, said it supported Peabody Energy Corp.’s revised A$4.1 billion ($3.8 billion) cash offer for the Australian coal producer. Peabody raised its offer by 14 percent yesterday, seeking to trump rival proposals to control Macarthur from New Hope Corp. and Noble Group Ltd. --With assistance from Kana Nishizawa, Toshiro Hasegawa and Masaki Kondo in Tokyo. Editors: Darren Boey, Nicolas Johnson.

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