Most Asian Stocks Fall, led by Technology Shares; Iluka Surges

Feb. 19 (Bloomberg) -- Most Asian stocks fell, led by technology companies after Hewlett-Packard Co. cut its profit forecast. Japanese exporters and Australian commodity producers advanced.

Samsung Electronics Co., the world’s largest memory-chip maker, dropped 1.1 percent as Hewlett-Packard’s chief executive officer said the industry won’t improve this year. Honda Motor Co., which gets half its revenue in North America, added 1.3 percent in Tokyo as the yen traded near its weakest this year against the dollar. Iluka Resources Ltd., the world’s biggest zircon producer, jumped 10 percent in Sydney after second-half profit surged almost sevenfold.

Five stocks declined for each that rose on the MSCI Asia Pacific Index, which was little changed at 77.60 as of 11:09 a.m. in Tokyo. The measure dropped 13 percent this year, extending 2008’s record 43 percent tumble, as the credit crisis sent the world’s biggest economies into recession.

“It’s difficult to see where significant demand will come in the next three months,” said Gary Anderson, who helps manage $3 billion of international equities in Kansas City for UMB Financial Corp. “The whole world seems to be slowing down by degrees. My concerns are deepening.”

The Nikkei 225 Stock Average gained 0.5 percent to 7,572.37, while Australia’s S&P/ASX 200 Index added 1.2 percent. Hong Kong’s Hang Seng Index dropped 1.3 percent and South Korea’s Kospi Index lost 1.6 percent.

Fortescue Metals Group Ltd., Australia’s third-biggest iron ore mining company, rose 7.7 percent after the Australian Financial Review reported a Chinese company may buy a stake.

Futures on the U.S. Standard & Poor’s 500 Index added 0.1 percent today. The gauge lost 0.1 percent yesterday as the Federal Reserve cut its growth forecast for the U.S. economy. Policy makers foresee the economic recovery could be delayed and “initially quite weak,” the central bank’s minutes released yesterday said.