Asian Stocks Fall as Global Recession Deepens; Samsung Declines

March 2 (Bloomberg) -- Asian stocks slid, dragging the Nikkei 225 Stock Average down the most in five weeks, and U.S. futures fell as declines in Japanese wages and South Korean exports fueled concerns the global recession is deepening.

Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, retreated 5.1 percent as bond risk rose and the nation’s wage declines accelerated in January. Samsung Electronics Co., the world’s biggest memory-chip maker, sank 3 percent in Seoul after the country’s exports dropped for a fourth month in February. BHP Billiton Ltd., the world’s largest mining company, lost 3.4 percent in Sydney as metal and oil prices slumped. Treasuries rose for the first time in a week.

“We don’t know yet how long this global recession will last,” said Hisakazu Amano, head of fund management at Tokyo- based T&D Asset Management Co., which oversees about $39 billion. “With the market dominated by an atmosphere of malaise and despair, there are few people who dare to buy.”

The MSCI Asia Pacific Index dropped 3 percent to 72.92 at 11:51 a.m. in Tokyo. The gauge has fallen 18 percent in 2009, extending last year’s record 43 percent tumble, as the world’s largest economies sank deeper into recession.

The Nikkei 225 Stock Average declined 3.2 percent, the most since Jan. 23, to 7,325.96. Hong Kong’s Hang Seng Index sank 3.6 percent, while South Korea’s Kospi slid 3.9 percent. All markets open for trading declined.

Macquarie Group Ltd., Australia’s largest investment bank, slumped 8.7 percent, as it said it had no outstanding capital commitments to its listed funds. HSBC Holdings Plc, Europe’s biggest bank, was halted from trading in Hong Kong on speculation it may raise $17 billion to bolster capital.

Worsening Recession

Futures on the Standard & Poor’s 500 Index dropped 1.4 percent today. The gauge fell 2.4 percent to a 12-year low on Feb. 27 after the Commerce Department said the U.S. economy shrank in the three months to December by the most since 1982. Citigroup Inc. tumbled 39 percent the same day as a government move to cut shareholders’ stakes in the company by 74 percent drove down U.S. bank stocks.

The worsening global recession has pummeled Asian exports, prompting companies from Toyota Motor Corp. to Sony Corp. to fire workers and halt factory lines. Monthly wages in Japan fell 1.3 percent from a year earlier, after declining 0.8 percent in December, the Labor Ministry said in Tokyo today.

Mitsubishi UFJ tumbled 5.1 percent to 431 yen in Tokyo. Mizuho Financial Group Inc., Japan’s second-largest bank, lost 4.3 percent to 180 yen.

Government Support?

Governments from the U.S. to China and Australia have introduced policies this year to ease the financial crisis and revive the global economy. Japan may buy as much as 10 trillion yen ($102 billion) in corporate bonds held by banks, the Mainichi newspaper reported today.

“We’ll see more statistics that show the deterioration of the global economy,” Seiji Arai, a strategist at Mitsubishi UFJ Securities Co., said in an interview with Bloomberg Television. “In Tokyo, there is growing optimism that the government will take measures to shore up the stock market and implement additional economic measures.”

The cost of protecting Asia-Pacific bonds from default jumped, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan rose 17.5 basis points, according to ICAP Plc.

Samsung Electronics declined 3 percent to 462,500 won. Hynix Semiconductor Inc., Asia’s second-biggest maker of memory chips, slumped 3.1 percent to 8,370 won. South Korea’s overseas shipments decreased 17.1 percent in February from a year earlier following January’s record 33.8 percent slump, the government reported today.

Copper, Oil

BHP dropped 3.4 percent to A$27.85 as copper futures in New York lost 0.9 percent in after-hours trading, extending Feb. 27’s 2.6 percent drop. Oil in New York slipped 1.9 percent today.

Rio Tinto Group, the world’s third-largest miner, slumped 6.6 percent to A$44.14. Cnooc Ltd., China’s largest offshore oil producer, fell 4.1 percent to A$6.52 in Hong Kong. Inpex Corp., Japan’s No. 1 oil explorer, lost 5.6 percent to 640,000 yen.

Macquarie, which last week said it had no plans to raise capital, fell for a 10th day, slumping 8.7 percent to A$15.51. The company said today it wasn’t planning to increase its investment in its listed funds.

HSBC’s Hong Kong shares, which were suspended today, ended last week at HK$56.95. The bank’s U.S.-traded receipts fell 5.1 percent to the equivalent of HK$53.99 on Feb. 27.

The lender may raise about 12 billion pounds ($17 billion) to bolster capital as bad U.S. loans erode earnings, said two people with knowledge of the situation. The lender will consider a rights offering, the people said.