Most Asian Stocks Fall on Economy Concerns; Mining Shares Gain

Aug. 23 (Bloomberg) -- Most Asian stocks fell amid mounting concerns over the global economy after calls by a European Central Bank official to maintain stimulus measures.

Canon Inc., which receives 32 percent of its revenue from Europe, sank 2.1 percent in Tokyo. Honda Motor Co., which gets 84 percent of its sales outside Japan, lost 2.1 percent before a report today that may show U.S. home sales declined in July. Rio Tinto Group, the world’s third-largest mining company, rose 1.1 percent in Sydney on speculation a proposed mining tax may be scrapped in Australia as investors awaited the results of a national election.

Two stocks dropped for each that rose in the MSCI Asia Pacific Index, which was little changed at 118.25 as of 10:41 a.m. in Tokyo. Stocks in the region extended the MSCI World Index’s 1.2 percent slump on Aug. 20 after ECB council member Axel Weber said the bank should help lenders through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency lending measures.

“The ECB official’s comments are making the market focus on Europe’s economic problems again,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees $104 billion. “Uncertainty about the economic recovery is making the market wary of taking risks.”

Japan’s Nikkei 225 Stock Average fell 0.8 percent, while South Korea’s Kospi index was little changed. New Zealand’s NZX 50 Index slipped 0.5 percent. Australia’s S&P/ASX 200 Index fell 0.1 percent after the nation’s federal election failed to deliver a majority government for the first time in 70 years.

Futures on the Standard & Poor’s 500 Index added 0.2 percent. The gauge declined 0.4 percent on Aug. 20 as a drop in commodities pulled oil and metals producers down amid concern the economic rebound may be flagging.