Asian Stocks Post Weekly Loss on Jobless Figures, Commodities

July 4 (Bloomberg) -- Asian stocks fell this week, the second weekly decline in three, as government data showed job markets are worsening, stoking concern the global economy will recover soon.

Mazda Motor Corp., a Japanese carmaker that exports most of its production, declined 2.8 percent on the week as jobless rates increased in Japan, the U.S. and Europe. Li & Fung Ltd., the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., dropped 5.4 percent. Indian truckmaker Tata Motors Ltd. plunged 12 percent and Seven & I Holdings Inc. fell 2.7 percent as both reported profit declines. BHP Billiton Ltd., the world’s No. 1 mining company, lost 2.2 percent as oil and copper prices declined.

The MSCI Asia Pacific Index lost 0.8 percent in the past five days, retreating from last weeks 2.2 percent climb. That pared the measure’s record 28 percent in the three months ended June 30 on optimism the global economy is stabilizing.

“We are running out of data points that can boost sentiment, so there’s not much hope for further gains,” said Tomomi Yamashita, a fund manager at Shinkin Asset Management Co. in Tokyo, which oversees about $5.5 billion. “Stocks are not at reasonable levels when you consider the facts.”

The Asian stock benchmark, which plunged by a record last year as the global economy slipped into recession, has now climbed 47 percent since reaching a more than five-year low on March 9. Stocks on the gauge now trade at 23.5 times estimated earnings, compared with 15 times at the market trough in March and 15.2 for the U.S.’s Standard & Poor’s 500 Index.

Tankan Disappoints

The Bank of Japan’s Tankan survey of manufacturer sentiment rebounded less than estimated, the central bank said on July 1, while government data showed Japan’s unemployment rate reached a five-year high in May. Australia’s exports dropped to a 14-month low, while building approvals declined by the most since 2002, its government said this week.

The Labor Department said yesterday U.S. employers cut 467,000 jobs in June, over 100,000 more than economists had forecast. That pushed the nation’s unemployment rate to 9.5 percent, a level not seen since August 1983. Europe’s unemployment rate also increased to 9.5 percent in May, the highest level since 1999.

Mazda lost 2.8 percent to 242 yen, the lowest since May 22. Sony Corp., maker of the PlayStation 3 game machine, lost 2.4 percent to 2,440 yen, a level not seen since April 3. Li & Fung lost 5.4 percent to HK$20.85 in Hong Kong.

Tata Motors, which owns the Jaguar and Land Rover car brands, plunged 12 percent to 298.5 rupees. The company posted its first annual loss in at least seven years on plunging sales at luxury units amid the global recession.

Lower Commodities

Seven & I plunged 2.7 percent to 2,190 yen. Japan’s biggest retailer said profit dropped 28 percent in the three months ended May 31 as worsening household income and job markets prompted consumers to save money, the company said.

Copper fell on the week on concern a weakening U.S. labor market will damage a recovery in demand for industrial metals. Crude oil declined for a third-straight week.

BHP lost 2.2 percent to A$33.43 in Sydney. Rio Tinto Group, the world’s third-biggest mining company lost 2.8 percent to A$49.60. Inpex Corp., Japan’s biggest petroleum explorer, sank 2.5 percent to 735,000 yen in Tokyo.

Aozora Bank Ltd. and Shinsei Bank Ltd. said this week they are merging to form Japan’s sixth-largest bank with assets of 18 trillion yen ($186 billion) after booking $4 billion in combined losses last year on overseas investments and bad loans.

Their concentration on real estate lending and a shortage of deposits may “become even more serious” after the tie-up, hampering profitability, Credit Suisse Group AG said in a report.

Shinsei tumbled 7 percent to 146 yen on the week, while Aozora lost 6.7 percent to 139 yen.

China Gains

China’s stocks rose, driving the Shanghai Composite Index to a third weekly gain. A government survey showed manufacturing expanded for a fourth month in June, while a report in the China Securities Journal said the nation’s electricity output rose in June, its first monthly advance since October.

China Shenhua Energy Co., the country’s largest coal producer, soared 21 percent to 33.45 yuan in Shanghai. China Coal Energy Co., the second biggest, surged 11 percent to 13.26

Bawang International (Group) Holding Ltd., a herbal shampoo maker that debuted in Hong Kong trading on July 3, jumped 27 percent to HK$3.03. China Qinfa Group Ltd., a coal trader that also had its initial public offering, advanced 6.4 percent to HK$2.68.

“In general there is huge enthusiasm about new IPOs,” Pu Yonghao, chief Asian investment strategist at UBS Wealth Management, told Bloomberg Television. “China has to rely on consumption rather than exports so consumer stocks attract lots of enthusiasm.”