Asian Stocks Decline on U.S. Growth Concern, Advancing Yen

Aug. 27 (Bloomberg) -- Asian stocks fell, set for their third weekly decline, as materials and technology stocks retreated ahead of revisions to U.S. economic growth figures, and as the yen continued to rise against all major counterparts.

BHP Billiton Ltd., the world largest mining company, fell 0.9 percent on concern weaker growth in the world’s largest economy will crimp demand for materials. Canon Inc., which makes 78 percent of its sales outside Japan, retreated 1.7 percent. Toyota Motor Corp., the world’s No. 1 automaker, declined 0.9 percent after saying it will recall 1.13 million Corolla and Matrix cars.

The MSCI Asia Pacific Index fell 0.2 percent to 116.30 at 10:14 a.m. in Tokyo. The gauge has retreated 5 percent since a three-month high reached on August 6. About three stocks fell for every two that rose, with declines driven also by renewed concern over Spain’s finances.

“The outflow of funds from Japanese stocks will unlikely stop as worries that the yen’s appreciation against the dollar accelerate amid concerns the global economy will slow down faster than expected,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.

Japan’s Nikkei 225 Stock Average sank 0.6 percent as the yen rose versus all 16 of its major counterparts. Australia’s S&P/ASX 200 Index retreated 0.1 percent, while New Zealand’s NZX 50 Index was little changed in Wellington.

Economy Concerns

Futures on the Standard & Poor’s 500 Index gained 0.1 percent today. In New York, the index dropped 0.8 percent to 1,047.22 yesterday, the lowest close since July 6, as a court ruled Spain’s method of auditing sales tax was illegal and the Federal Reserve Bank of Kansas City said manufacturing growth stalled in the region. Stocks earlier gained after a drop in jobless claims.

Revisions of second-quarter growth in the U.S. will be announced today and may lower last quarter’s 2.4 percent annual growth rate by 1 percentage point or more, according to Morgan Stanley’s David Greenlaw and Nomura Securities International Inc.’s David Resler.