Most Asian Stocks Fall on Ireland Rating, China Policy Concern

Most Asian stocks fell after Ireland’s credit rating was lowered and as China’s leadership meets to review the world’s fastest-growing major economy amid speculation policy makers will raise interest rates this weekend.

Honda Motor Co., a Japanese carmaker that gets about 80 percent of its sales abroad, lost 0.9 percent in Tokyo as the euro weakened against the yen, damping the outlook for export earnings. BHP Billiton Ltd., the world’s largest mining company, fell 0.5 percent in Sydney as copper prices fell from a 31-month high in New York yesterday. OZ Minerals Ltd., an Australian copper and gold producer, sank 3 percent.

“Investors are concerned European debt issues will worsen,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “Investors may sell exporters, which led market gains in November, on the weaker euro against the yen.”

The MSCI Asia Pacific Index was little changed at 133.33 as of 9:28 a.m. in Tokyo, with almost three stocks declining for each that advanced. The gauge slid 0.6 percent in November after two straight monthly gains as concern grew that China’s anti- inflation measures, Europe’s debt crisis and tensions on the Korean peninsula may cool a global economic recovery.

Japan’s Nikkei 225 Stock Average dropped 0.5 percent. South Korea’s Kospi Index and Australia’s S&P/ASX 200 Index were little changed.

Futures on the Standard & Poor’s 500 Index were little changed today. The index climbed 0.4 percent yesterday to a two- year high after Pacific Investment Management Co., the operator of the world’s largest bond fund, raised its forecast for economic growth and the U.S. Labor Department said applications for unemployment benefits fell.

Ireland, Euro

Fitch Ratings cut its credit rating on Ireland by three levels to the lowest grade among the major rating companies after the country sought international assistance last month to rescue its banks.

The euro depreciated to 111.65 yen yesterday in New York, its lowest level this month. A weaker euro reduces the value of overseas income at Japanese companies when converted into their home currency.

Copper prices for March delivery fell in New York on speculation that China, the world’s biggest metal consumer, may raise interest rates to slow economic growth and inflation. The London Metal Exchange Index of six metals including copper and aluminum slipped 0.8 percent yesterday, the first drop this week.

The MSCI Asia Pacific Index climbed 11 percent this year through yesterday, compared with gains of 11 percent by the Standard & Poor’s 500 Index and 8.7 percent by the Stoxx Europe 600 Index. Shares in the Asian benchmark are valued at 14.7 times estimated earnings on average, versus 14.5 times for the S&P 500 and 12.3 times for the Stoxx 600.