Most Asian Stocks Fall on Lower Commodity Prices; Samsung Gains

July 7 (Bloomberg) -- Most Asian stocks declined, led by commodity companies, on lower oil and metal prices. Utilities advanced on optimism energy costs will drop.

Rio Tinto Group Ltd., the world’s third-biggest mining company, declined 2.7 percent in Sydney, while Inpex Corp., Japan’s largest oil explorer, dropped 1.5 percent. Tokyo Electric Power Co., Asia’s largest utility, added 1.2 percent. Samsung Electronics Co., the world’s largest maker of computer- memory chips, gained 1.4 percent after BNP Paribas recommended investors buy the stock.

“Volumes are light and commodities are tumbling, which is encouraging investors to stay on the sidelines until they can get a fix on the direction of the economy,” said Fumiyuki Nakanishi, a strategist at SMBC Friend Securities Co.

The MSCI Asia Pacific Index lost 0.5 percent to 101.66 at 10:51 a.m. in Tokyo, with four stocks declining for every three that rose. The measure has slipped 3.4 percent since climbing to an eight-month high on June 12 as disappointing economic data damped demand for equities. The measure has gained 44 percent from a more than five-year low on March 9.

Japan’s Nikkei 225 Stock Average fell 0.4 percent to 9,642.75. Mitsui O.S.K. Lines Ltd., the world’s largest operator of iron-ore vessels, fell 2.3 percent after shipping rates fell for a fourth day. Australia’s S&P/ASX 200 Index declined 0.5 percent, while China’s Shanghai Composite Index sank 1.1 percent.

Futures on the Standard & Poor’s 500 Index lost 0.3 percent. The measure gained 0.3 percent yesterday as Moody’s Investors Service said it may lift Brazil’s debt rating.

Commodities Slide

Rio Tinto declined 2.7 percent to A$47.18. BHP Billiton Ltd., the world’s largest mining company, lost 1.7 percent to A$32.06. Mitsubishi Corp., which gets almost half of sales from commodities, dipped 1.4 percent to 1,671 yen. Copper futures in New York fell 0.5 percent in after-hours trading, taking declines in the past three days to 3.5 percent.

Inpex Corp., Japan’s largest oil explorer, lost 1.5 percent to 702,000 yen. Woodside Petroleum Ltd., Australia’s second- largest oil producer, slid 1.3 percent to A$40.32. Crude oil slid 4 percent to $64.05 a barrel yesterday in New York, the lowest settlement since May 27.

Tokyo Electric gained 1.2 percent to 2,480 yen on optimism lower oil prices will cut its fuel bill. The company slashed its use of crude oil and fuel oil to generate power after it restarted a nuclear reactor on May 19.

Sumco, LG Electronics

Samsung Electronics gained 1.4 percent to 643,000 won. The company had its rating upgraded to “buy” from “hold” at BNP Paribas, which said the company’s second-quarter earnings guidance was “significantly” higher than analysts’ expectations. The brokerage lifted its share-price estimate to 740,000 won from 630,000 won in a report today. Sumco Corp., the world’s second-largest maker of silicon wafers, jumped 4.8 percent to 1,450 yen. The stock was lifted to “overweight” from “underweight” at Morgan Stanley, which said wafer prices are unlikely to fall further.

LG Electronics Co., the world’s third-largest maker of liquid-crystal display televisions, climbed 2 percent to 125,500 won. The company said it will invest $100 million in its Mexican manufacturing plants over the next three years.

Mitsui O.S.K. Lines sank 2.3 percent to 554 yen. STX Pan Ocean Co., South Korea’s biggest bulk-commodity shipping line, fell 2.6 percent to 11,150 won. The Baltic Dry Index, a measure of shipping costs for commodities, retreated 4.1 percent, taking losses since June 3 to 21 percent.

Daihatsu Motor Co. advanced 6.6 percent to 990 yen. Japan’s largest minicar maker was rated “buy” in new coverage at Deutsche Bank AG and was raised to “buy” from “underperform” at Bank of America Co.’s Merrill Lynch unit.