Asian stock markets declined in volatile session (Bloomberg) (30-01-2008)

Jan. 30 (Bloomberg) – Asian stock markets declined as South Korean shipbuilders and Japanese power producers fell, on concern slowing global growth and rising fuel costs will erode earnings.

The MSCI Asia Pacific Index lost 1.3 percent to 141.46 at 6:12 p.m. in Tokyo, reversing an earlier gain of 0.8 percent. The benchmark is set for its worst month since September 2001. South Korea's Kospi Index fell 3 percent, the region's biggest decline.

Japan's Nikkei 225 Stock Average dropped 1 percent to 13,345.03. Hong Kong's Hang Seng Index slumped 2.6 percent. All other Asian benchmarks retreated apart from the Philippines, Thailand and Vietnam. Indonesia was little changed.

The financial sector was declining today with banks in Japan mostly lower and Mitsubishi UFJ was fractionally down by 0.1%, Sumitomo also down by .043%, while Mizuho Financials declined by 1.59%

The shipping sector was hit by downgrades and Hyundai Heavy plunged 10 percent to 286,000 won, the most since Sept. 12, 2001. Samsung Heavy slumped 10 percent to 25,400 won, its lowest level since April 5.

Macquarie cut ratings on South Korea's shipyards to “underperform” from “outperform” and reduced share-price estimates by as much as 70 percent, as banks become more cautious about lending to shipping and charter companies.

HSBC, Europe's No. 1 bank by market value, dropped 0.4 percent to HK$117.10, reversing an earlier gain of as much as 1.5 percent. Bank of China, which has the largest subprime-related holdings among Asian banks, slid 1.8 percent to HK$3.27.

On the other hand in Japan Nippon Yusen gained 4 percent to 858 yen, its highest since Jan. 9. Mitsui O.S.K. Lines Ltd., the No. 2 shipping company in Japan, advanced 5.9 percent to 1,304 yen, completing its steepest gain since May 21. Evergreen Marine Corp., Asia's largest container line, advanced 2.4 percent to NT$24 in Taipei.

Credit Suisse Group raised its stock rating on Nippon Yusen to ``outperform'' from ``neutral'' after the Tokyo-based company increased its profit forecast.

Emeco Holdings Ltd., an Australian earthmoving company, tumbled 24 percent to 71 Australian cents - the biggest drop on record - after saying full-year profit may be lower than last year.

Source: Bloomberg