Asian Stocks Continue to Drop on U.S. Outlook (Bloomberg) (07-01-2008)

Jan. 7 (Bloomberg) -- Asian stocks continued to fall for a third session, as the reported slowdown in U.S. hiring reinforced concern the world's biggest economy will sink into recession.

Among the shares leading declines in the region were Samsung, which dropped the most in six weeks and Nintendo Co., which reached the lowest since Nov. 21. In the mining sector, BHP led losses after metals prices retreated on speculation the U.S. housing slump is reducing demand.

Singapore Airlines Ltd., bidding for a stake in a Chinese carrier, dropped the most in almost five months after a rival pledged to make a higher offer.

The MSCI Asia Pacific Index fell 2.2 percent to 152.57 as of 3:57 p.m. in Tokyo, bringing this year's decline to 3.3 percent. About five stocks retreated for each that gained on the benchmark, which is headed for its biggest one-day drop since Dec. 17.

The Nikkei 225 Stock Average sank 1.3 percent to 14,500.55, extending a plunge of 4 percent on Jan. 4, its first trading day of the year. The broader Topix index dropped 1.4 percent to close below 1,400 for the first time since Oct. 24, 2005. Japanese exporters also declined today after the yen climbed against the dollar. Benchmarks fell in all other markets open for trading, except for China and India.

Hon Hai Precision Industry Co., maker of Apple Inc.'s iPods, tumbled 6.3 percent to NT$171.50 in Taipei. Li & Fung Ltd., a Hong Kong-based supplier to Wal-Mart Stores Inc., plunged 6.3 percent to HK$29.05, the biggest decline since Dec. 17. Westfield Group, the owner of 59 shopping malls in the U.S., sank 2.6 percent to A$19.29 in Sydney.

Nintendo, maker of the Wii game console, fell 6.1 percent to 59,700 yen, the lowest since Nov. 21. Nissan Motor Co., Japan's No. 3 automaker, lost 1.7 percent to 1,098 yen. Japanese shares also dropped after the yen surged to as high as 107.91 versus the dollar in New York, the strongest since Nov. 27, reducing the value of U.S. sales when converted into the Japanese currency.

Financials in Japan traded in a narrow range with more declines than advances as Mitsubishi UFJ lost 0.6%, Sumitomo declined by 0.7% and Mizuho Financials fell by 1.57% while Saporo Hokuyo was down by 6.53% and Towa Bank gained 3.54%.

In Taiwan, shares of memory-chip makers plunged after the Commercial Times said Powerchip Semiconductor Corp. and two other Taiwanese companies will post record losses on declining prices.

Powerchip, Taiwan's biggest maker of memory chips used in computers, slumped 6.8 percent to NT$12.40. Nanya Technology Co., the island's No. 2 memory-chip maker, fell 4.8 percent to NT$17.05. ProMOS Technologies Inc. lost 5.9 percent to NT$8.

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