Asian Stocks Decline on U.S. Economic Outlook (Bloomberg) (03-01-2008)

Jan. 3 (Bloomberg) -- Asian stocks followed the drop in U.S. markets, after the largest decline in U.S. manufacturing in five years and record oil prices heightened concerns the world's biggest economy will enter a recession.

The MSCI Asia Pacific excluding Japan Index lost 0.9 percent to 521.44 as of 2:50 p.m. in Hong Kong. The benchmark slid 0.7 percent yesterday on reports that showed the economies of South Korea and Singapore are slowing.

Markets are closed for a fourth day in Japan, while all other Asian markets except China and Pakistan posted losses.

Hon Hai lost 3.9 percent to NT$187. Hynix Semiconductor Inc., the world's second-biggest maker of memory chips, fell 1 percent to 24,600 won. Westfield Group, the owner of 59 shopping malls in the U.S., dropped 4.1 percent to A$20.15.

BHP, the world's largest mining company, fell 0.5 percent to A$40.10. Rio Tinto Group, the third biggest, declined 1.8 percent to A$131.61. The U.S. is the second-largest copper user behind China.

National Australia, the country's biggest lender, decreased 1.4 percent to A$36.95. Commonwealth Bank of Australia, the second largest, slid 1.8 percent to A$57.75. Industrial & Commercial Bank of China Ltd., the world's largest bank by market value, dropped 4 percent to HK$5.35 in Hong Kong.

China Mobile, the country's largest mobile-phone network operator, lost 2 percent to HK$133.50 in Hong Kong. China Unicom Ltd., the No. 2, slid 2.7 percent to HK$16.86.

Representatives of consumers, mobile-phone companies, telecommunication experts and the government will hold a public hearing in the second half of January on cutting domestic mobile- phone roaming fees, China's National Development and Reform Commission said on its Web site yesterday.

China Eastern dropped 6 percent to HK$7.57 in Hong Kong. China National Aviation Holding Co. said it will vote against the plan to sell a 24 percent stake in the airline to Singapore Airlines Ltd. and Temasek Holdings Pte at HK$3.80 apiece. China Aviation owns about 10 percent of China Eastern.

Singapore Air slid 1.1 percent to HK$17.02.

Airlines also dropped as investors speculated higher fuel costs will erode carriers' profits. Cathay Pacific Airways Ltd., Hong Kong's largest airline, fell 2.4 percent to HK$19.82. China Southern Airlines Co., the nation's biggest carrier by sales, declined 3.3 percent to HK$10.10 in Hong Kong.

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