Asian Stocks Fall to Two-Week Low on Chinese Growth Concerns

June 29 (Bloomberg) -- Asian stocks fell, dragging the MSCI Asia Pacific Index to a two-week low, as concerns over Chinese economic growth overshadowed stock buybacks in Japan and Taiwan.

China Minsheng Banking Corp. and Angang Steel Co. sank at least 2 percent in Shanghai and Shenzhen respectively after the Conference Board corrected its April gauge for the outlook of China’s economy to indicate slower growth. Citigroup Inc. said the country’s exports face “strong headwinds.” Asustek Computer Inc. gained 1 percent in Taipei and Tokio Marine Holdings Inc. advanced 0.9 percent in Tokyo on plans to repurchase stock.

The MSCI Asia Pacific Index lost 0.6 percent to 114.97 as of 12:49 p.m. in Tokyo, set for its lowest close since June 15. The gauge has slumped 11 percent from its high this year on April 15 on concern Europe’s debt crisis and Chinese steps to curb property prices will hurt global growth.

“The market is pausing to digest the implications of the macro overhang of the last couple of weeks,” said Jason Teh, who helps manage $3 billion at Investors Mutual in Sydney. “Markets are maybe realizing the growth trajectory may be slower because there is still too much leverage in the system. Today there is more of a focus on stocks specific news.”

China’s Shanghai Composite Index slumped 1.8 percent and Hong Kong’s Hang Seng Index lost 1.1 percent. South Korea’s Kospi dropped 0.6 percent, while Australia’s S&P/ASX 200 Index lost 0.2 percent. Japan’s Nikkei 225 Stock Average sank 0.5 percent.

China Stocks Fall

Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The index fell 0.2 percent yesterday, dragging the gauge lower for the fifth time in six days, as oil and metal prices dropped.

Minsheng Banking, the nation’s first privately owned bank, dropped 2.1 percent to 6.22 yuan. Angang Steel lost 2 percent to 7.49 yuan.

The Conference Board said its index of leading Chinese economic indicators rose 0.3 percent in April, less than the 1.7 percent gain reported on June 15. The New York-based research firm said in an e-mailed statement the previous release contained a “calculation error.”

Asustek gained 1 percent to NT$244.5 in Taipei. The maker of the Eee PC low-cost notebook said its board approved plans to buy back and cancel up to 10 million shares, or 1.57 percent of its outstanding stock.

Tokio Marine, a Japanese casualty insurer, gained 0.9 percent to 2,378 yen after announcing plans to buy back as many as 16 million shares, or 2 percent of its stock, for as much as 25 billion yen.

Nippon Telegraph

Nippon Telegraph & Telephone Co. climbed 1.2 percent to 3,670 yen. The company’s NTT Finance Corp. unit may post its first operating profit in three years, Nikkei English News reported, without saying where it got the information.

Government reports today showed that Japan’s industrial production and household spending slipped in May and the unemployment rate unexpectedly increased, in signs that the recovery of the world’s second-largest economy may slow.

“People in the market are wondering how to respond to two opposite trends, the risk of a global economic double dip and robust growth in emerging countries,” said Ayako Sera, a strategist in Tokyo at Sumitomo Trust & Banking Co., which manages about $310 billion.