Asia Stocks Swing Between Gain, Loss as Share Sales Temper Stimulus Hopes By Anna Kitanaka and Satoshi Kawano - Sep 7, 2011

Asian stocks swung between gains and losses as job declines in Australia and share sale concerns countered speculation the U.S. will do more to stimulate economic growth.

Samsung Electronics Co., which counts America as its second-biggest market, rose 1.3 percent in Seoul. Commonwealth Bank of Australia slumped 1.5 percent in Sydney. Belle International Holdings Ltd., a Chinese retailer of women’s shoes, tumbled 8.7 percent after saying some staff may sell its shares. Woori Investment & Securities Co., a South Korean brokerage, sank 15 percent in Seoul on speculation it may sell new shares.

The MSCI Asia Pacific Index climbed 0.1 percent to 121.74 at 11:52 a.m. in Tokyo, having swung between a gain of 0.9 percent and a loss of 0.1 percent. Belle International and Korean brokerages led declines amid concern that share sales will dilute shareholder value.

“Concerns about the U.S. and Europe are easing for now,” saidMitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “Foreign investors’ risk sentiment is rebounding, judging from a sharp increase in oil futures. The bias is for stocks dependent on foreign demand, especially export-related ones, to be bought.”

Japan’s Nikkei 225 (NKY) Stock Average rose 0.5 percent. South Korea’s Kospi Index was little changed. Australia’s S&P/ASX 200 Index dropped 0.3 percent after a statistics bureau report showed the nation’s employers unexpectedly cut workers for a second straight month in August. Hong Kong’s Hang Seng Index dropped 0.7 percent.

Vietnam’s Ho Chi Minh Stock index jumped 2.8 percent. The gauge has risen for 10 days straight, it’s longest streak of gains since August 2008.
Obama Plan

Futures on the Standard & Poor’s 500 Index slid 0.3 percent today. In New York, the index rose 2.9 percent yesterday as President Barack Obama prepared to unveil his proposals for promoting job growth in an address to a joint session of Congress today. He plans to propose injecting more than $300 billion into the economy next year, mostly through tax cuts, infrastructure spending and direct aid to state and local governments.

Equities also advanced on prospects Federal Reserve Chairman Ben S. Bernanke will today signal that policy makers will consider further stimulus measures to spur the economy. Bernanke is scheduled to address the U.S. economic outlook at a speech in Minneapolis. Fed policymakers will meet for two days from Sept. 20 to discuss the economy and appropriate responses.
Woori Investment Plunges

Among stocks that declined, Woori Investment & Securities tumbled 15 percent to 11,100 won in Seoul, the biggest drop on the MSCI Asia Pacific Index. Woori Investment may sell new shares to raise 500 billion won this year, Newstomato earlier reported, citing unidentified industry officials.

Also in South Korea, Daewoo Securities Co. plunged 15 percent to 11,700 won after it announced plans to sell 1.4 trillion won of new shares.

In Hong Kong, Belle International, a Chinese maker of women’s shoes, tumbled 8.7 percent to HK$14.84, the second- biggest drag on the Hang Seng Index. The company said managers, including Chief Executive Officer Sheng Baijiao, plan to sell shares in the company.

To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Satoshi Kawano in Tokyo at skawano1@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
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