By Shani Raja June 5 (Bloomberg) -- Asian commodity stocks fell this week on concern China’s economic growth is slowing, while carmakers rose after a report showed their U.S. sales advanced in May. BHP Billiton Ltd., the world’s largest mining company, sank 2.8 percent in Sydney after the world’s two biggest copper producers said China’s plans to curb its economic expansion threaten to reduce demand for the metal. Anhui Conch Cement Co. dropped 2.8 percent in Hong Kong. Toyota Motor Corp., the world’s largest carmaker, gained 1.4 percent in Tokyo. Fuji Heavy Industries Ltd. surged 9.5 percent on speculation the maker of Subaru cars will book record profit in North America. The MSCI Asia Pacific Index was little changed this week at 113.42, bringing its decline this year to 5.8 percent. A measure of material stocks dropped the most this week among the gauge’s 10 industry groups, as purchasing managers’ indexes showed China’s manufacturing industry grew at a slower pace in May. “Chinese economic growth remains a significant risk in the eyes of investors, particularly given the uncertainty surrounding other regions, particularly the euro-zone,” said Tim Schroeders, who helps manage about $1.1 billion at Pengana Capital Ltd. in Melbourne. China’s Shanghai Composite Index lost 3.9 percent this week, Hong Kong’s Hang Seng Index rose less than 0.1 percent and Australia’s S&P/ASX 200 Index retreated 0.2 percent. Japan’s Nikkei 225 Stock Average climbed 1.4 percent as gains in U.S. sales of homes and cars boosted optimism demand for Asian-made products will drive corporate earnings. The measure was little changed yesterday after Naoto Kan was elected as Japan’s prime minister following the resignation of Yukio Hatoyama on June 2. Both were with the Democratic Party of Japan. ‘Market Lacks Direction’ “The market lacks direction,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $64 billion. “It’s uncertain whom the Democratic Party will partner with and what policy measures it will take.” The MSCI Asia Pacific Index has declined about 12 percent from this year’s high on April 15 as China boosted steps to curb inflation and on speculation that widening European budget deficits will derail a global recovery. BHP Billiton fell 2.8 percent this week to A$37.87 and Rio Tinto Group, the world’s third-biggest mining company, dropped 0.9 percent to A$67.59 in Sydney, after Codelco and Freeport- McMoran Copper & Gold Inc.’s chief executive officers predicted slowing demand. ‘Volatile’ Copper Market The copper market will be “volatile” for as much as another year after China took measures to cool its property market, Codelco Chief Executive Officer Diego Hernandez said on June 3. The Asian nation is a “risk to the world’s marketplace in the near term,” Freeport-McMoran CEO Richard Adkerson said in an interview. Anhui Conch, China’s biggest cement maker, lost 2.8 percent to HK$24.65 in Hong Kong. Baoshan Iron & Steel Co., the listed unit of China’s second-biggest steelmaker, sank 4.2 percent to 6.21 yuan in Shanghai. The Purchasing Managers’ Index fell to 53.9 from 55.7 in April, China’s Federation of Logistics and Purchasing said on June 1. That was less than the median 54.5 estimate in a Bloomberg News economist survey. Readings above 50 indicate an expansion. A separate purchasing managers’ index from HSBC Holdings Plc and Markit Economics fell to 52.7 in May from 55.2 in April. Oil Spill Disaster “People are becoming aware of slowing momentum in the global economy,” said Hiroshi Morikawa, a strategist in Tokyo at MU Investments Co., which manages about $14 billion. Also in Tokyo, Mitsui & Co., Japan’s second-biggest trading company by market value, fell 8.7 percent to 1,206 yen, the biggest drop this week in the Nikkei 225. The company holds a stake in an oil field operated by BP Plc in the Gulf of Mexico where the worst oil spill in U.S. history is unfolding. Mitsubishi Corp., Japan’s biggest trading company, lost 5 percent to 1,970 yen. Toyota gained 1.4 percent to 3,345 yen. Honda Motor Co., Japan’s No. 2 carmaker, advanced 1.7 percent to 2,825 yen. Nissan Motor Co., the third-biggest, rose 0.5 percent to 665 yen. U.S. auto sales rose 19 percent last month as consumers returned to dealer lots after 2009’s recession triggered the weakest market in decades. Toyota’s sales climbed 6.7 percent and Nissan’s surged 24 percent. Fuji Heavy surged 9.5 percent to 566 yen, the second- biggest gain in the Nikkei 225 this week. The maker of Subaru cars may report a record operating profit of about 45 billion yen ($487 million) in North America, Nikkei English News reported, without saying how it got the information. James Hardie Climbs Further buoying confidence in the U.S. economy this week, the number of contracts to buy previously owned U.S. homes climbed in April as Americans took advantage of the last month of a tax credit. An index of pending home resales rose 6 percent, the National Association of Realtors said, exceeding the median forecast of economists surveyed by Bloomberg News. James Hardie Industries SE, the biggest seller of home siding in the U.S., gained 2 percent in Sydney. “The data provides assurance that the U.S. economy is improving and that’s boosting investor sentiment,” said Yoshihiro Ito, a strategist at Okasan Asset Management Co., which oversees about $10 billion in Tokyo. To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net.

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