Most Asian Stocks Fall as Yen, Oil Overshadow Obama Stimulus

Sept. 7 (Bloomberg) -- Most Asian stocks fell as a stronger yen and declines in oil prices overshadowed a stimulus plan proposed by President Barack Obama to help boost the U.S. economy.

Nissan Motor Co. sank 1.5 percent in Tokyo on concern the yen’s strength will reduce the value of overseas revenue. Mitsubishi Corp., Japan’s largest commodities trader, lost 0.8 percent after crude-oil futures dropped in New York. Posco, the world’s third-biggest steelmaker, climbed 3.6 percent in Seoul on speculation Obama’s plan will boost demand for the material.

More than two stocks dropped for each one that advanced in the MSCI Asia Pacific Index, which lost 0.2 percent to 121.65 as of 9:50 a.m. in Tokyo. The gauge rallied 4.6 percent in the past four days amid optimism the U.S. economy will avoid falling back into a recession.

“Expectations the economy will not fall into a double-dip recession increased after Obama announced a stimulus plan for the U.S.,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “As the yen is an important element that moves the market, its gain may weigh on Japanese stocks.”

Japan’s Nikkei 225 Stock Average dropped 0.6 percent, while Australia’s S&P/ASX 200 Index declined 0.1 percent. South Korea’s Kospi Index rose 0.1 percent.

Futures on the Standard & Poor’s 500 Index lost 0.1 percent. U.S. markets are due to resume trading later today after a holiday yesterday. At a rally for Labor Day, President Obama proposed spending at least $50 billion to fix roads, railways and runways, and to modernize the air-traffic control system to help spur an economy that’s lost jobs for three straight months.