Asian Stocks Fall on U.S. Jobs, Tighter Rules on Banks’ Capital

Dec. 18 (Bloomberg) -- Asian stocks fell after claims for unemployment benefits in the U.S. unexpectedly increased, FedEx Corp. forecast lower-than-estimated profit and international regulators said banks must hold more capital.

BHP Billiton Ltd., the world’s biggest mining company, dropped 1.8 percent in Sydney after metal prices declined. Mizuho Financial Group Inc., Japan’s No. 3 bank by market value, and Seoul-based Woori Finance Holdings Co. lost at least 2 percent. Telstra Corp., Australia’s largest telephone company, retreated 2.8 percent after cutting annual sales forecast.

“Concerns that the global economy is going to slow will increase as people recognize the fragility of U.S. employment,” said Juichi Wako, a senior strategist at Nomura Holdings Inc., Japan’s biggest brokerage. “Money is moving away from risk assets.”

More than three stocks retreated for each that rose on the MSCI Asia Pacific Index, which fell 0.2 percent to 118.15 as of 9:38 a.m. in Tokyo. The gauge has declined 1.3 percent in the past five days, set for a second week of slumps, on concern China will take steps to curb property speculation and that the U.S. Federal Reserve will raise interest rates.

Japan’s Nikkei 225 Stock Average slid 0.8 percent, and the S&P/ASX 200 Index fell 1.2 percent in Sydney. The Kospi Index dropped 0.4 percent in Seoul.

U.S. Stocks

Futures on the Standard & Poor’s 500 Index fell 0.3 percent. The benchmark index sank 1.2 percent in New York yesterday, the most in three weeks, after FedEx, the second-largest U.S. package-shipping company, said earnings for the three months ending in February will be in a range of 50 cents to 70 cents a share, compared with the 84 cents estimated by analysts.

Initial claims for joblessness benefits rose to 480,000 in the week ended Dec. 12, a report from the U.S. Labor Department showed, while economists had projected a decline to 465,000.

The MSCI Asia Pacific Index has rallied 32 percent this year, outpacing gains of 21 percent by the S&P 500 and 25 percent for Europe’s Dow Jones Stoxx 600 Index. Stocks in the benchmark are valued at 22 times estimated earnings, compared with 18 times for the S&P and 15 times for the Stoxx.

The London Metal Exchange Index of six metals including copper and zinc tumbled 2.2 percent yesterday, the most since Oct. 30. Gold futures for February delivery sank 2.5 percent.

Banks should increase the quality of the capital they hold by the end of 2012 to cope with losses, the Basel Committee on Banking Supervision said in a report yesterday. Banks’ core capital should exclude stock or instruments that may require lenders to make payments to third parties, as these could reduce reserves needed for meeting losses, the committee said.