Australian Stocks Drop on ANZ Profit; South Korean Shares Rise

April 29 (Bloomberg) -- Australian stocks fell for a second day after the nation’s fourth-biggest lender reported a slump in profits and commodity prices slipped. South Korean equities rose as the nation’s current-account surplus widened.

Australia & New Zealand Banking Group Ltd. sank 4.8 percent in Sydney after rising bad debts dragged first-half profit down by 28 percent. Rio Tinto Group, the world’s third-biggest mining company, declined 1.4 percent after metals traded in London fell for a second day. Hynix Semiconductor Inc., the world’s second- biggest computer-memory chipmaker, rose 1.5 percent in Seoul after the Maeil Business Newspaper said the company plans to sell equipment.

Australia’s benchmark S&P/ASX 200 Index dropped 0.2 percent to 3,702.60 at 11:16 a.m. Sydney time. South Korea’s Kospi index gained 1 percent to 1,313.50. The MSCI Asia Pacific excluding Japan Index rose 0.4 percent to 263.90, after a two-day, 4 percent decline. The Japanese market is shut for a holiday.

“People in the market are looking for a reason to buy cheap equities,” said Angus Gluskie, who manages about $256 million at White Funds Management Pty. in Sydney. “They are being too optimistic relative to the fundamentals that are out there.”

Futures on the U.S. Standard & Poor’s 500 Index gained 0.5 percent. The gauge lost 0.3 percent yesterday as concerns that banks need more capital and the swine-flu outbreak will thwart an economic recovery offset a bigger-than-expected jump in consumer confidence.

Overseas Shipments

ANZ Banking slumped 4.8 percent to A$15.84. Rio Tinto lost 1.5 percent to A$60.68 as a measure of metals traded in London fell 3 percent.

In Seoul, companies that rely on overseas sales advanced after the central bank said South Korea’s current-account surplus widened to a record $6.65 billion in March as imports fell and the pace of a decline in exports eased. Overseas shipments, which make up 60 percent of South Korea’s gross domestic product, rose 10.5 percent from February.

Samsung Electronics Co., the world’s second-largest maker of mobile phones, added 0.9 percent to 580,000. UBS AG increased its share-price target by 9.1 percent.

Hynix gained 1.4 percent to 14,200 won. The company plans to sell about 500 billion won ($368 million) of equipment, the Maeil reported, citing unidentified industry officials.