Carl-Peter Forster, chief executive officer of Tata Motors Ltd. (TTM), owner of the Jaguar and Land Rover brands, has resigned after less than two years at the helm citing “unavoidable personal circumstances.”
Forster, who joined Tata Motors in 2010, will remain as a non-executive member on the company’s board, the Mumbai-based Tata Motors said in an e-mailed statement today. India’s biggest automaker by revenue hired Forster from General Motors Co. (GM) where he was head of European operations.
Tata Motors’ American depositary receipts plunged 9.2 percent to $15.35 yesterday in New York. Forster’s resignation is a “setback” as the company struggles to boost sales at home in India, while the debt crisis in Europe slows demand for Jaguar cars, according to Deepesh Rathore, managing director for IHS Automotive in India.
“He was one of the strong pillars for JLR,” said Pramod Amthe, an analyst with Royal Bank of Scotland Group Plc in Mumbai. “His exit as the head of the business is definitely negative. Investors may not get the same level of comfort they used to get from talking to Carl.”
Prakash Telang, managing director of the company’s Indian operations, and Ralf Speth, chief executive officer of Jaguar Land Rover, will represent their respective units on Tata Motors’ board, according to today’s statement.
“The board respects Carl-Peter’s personal circumstances that led to this move,” Chairman Ratan Tata said in an e-mailed statement today. “We would like to thank him for his contributions to the successful development of our company.”
World’s Cheapest Car
Passenger-vehicle sales at Tata Motors slumped 33 percent in August from a year earlier after India’s central bank raised its benchmark interest rate to 8 percent in July, the highest among Asia’s biggest economies.
Jaguar sales declined 23 percent to 4,372 in July, according to a company statement. Almost 25 percent of Jaguar and Land Rover sales come from the U.K., where the economy grew at the slowest pace in the second quarter since it contracted in the first three months of 2010. North America and Europe account for about 22 percent each of sales, according to a company presentation.
Deliveries of the Nano, the world’s cheapest car, plunged 85 percent to 1,202 units in August, Tata Motors said in a statement on Sept. 1. The Society of Indian Automobile Manufacturers said this week it may cut the industry’s sales forecast after economic growth slowed to the least in six quarters in the three months ended June.
Nano sales haven’t picked up, while “the Indica and Indigo brands are laggards in their respective segments,” said IHS Automotive’s Rathore. “A double dip in Europe will be catastrophic for Jaguar and Land Rover.” The Indica is a hatchback and the Indigo is a sub-compact sedan on the same platform.
Successor
Tata Motors shares declined 3.3 percent to 764.9 rupees at the 3:30 p.m. close in Mumbai. The shares have declined 42 percent this year, compared with a 18 percent decline in the BSE India Sensitive Index. Forster’s resignation was announced after market hours.
“I would expect Forster’s position to be filled up in the next two to three months if the company wants to keep their plans on track,” said Rathore.
Tata Motors bought Jaguar Land Rover from Ford Motor Co. in 2008 for $2.5 billion.
To contact the reporters on this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net; Malavika Sharma in New Delhi at msharma52@bloomberg.net.
To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net.
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Friday, September 9, 2011
Thursday, September 8, 2011
Asian Stocks Rise, Paring Weekly Loss, on U.S. Jobs Plan, Lower China CPI By Anna Kitanaka - Sep 8, 2011
Asian stocks rebounded after U.S. President Barack Obama unveiled a $447 billion package to stimulate jobs growth and China said inflation was easing.
Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday.
The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
Japan’s Nikkei 225 (NKY) Stock Average climbed 0.1 percent, reversing an earlier loss of 0.7 percent after the Cabinet Office said Japan’s economy contracted more than the government initially estimated.
South Korea’s Kospi Index fell 0.2 percent. Australia’s S&P/ASX 200 Index increased 1 percent.
Hong Kong’s Hang Seng Index rose 0.8 percent while the Hang Seng China Enterprises Index increased 1.5 percent after China’s inflation eased to 6.2 percent last month from a three-year high the month before. China’s Shanghai Composite Index rose 0.8 percent.
To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED
Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday.
The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
Japan’s Nikkei 225 (NKY) Stock Average climbed 0.1 percent, reversing an earlier loss of 0.7 percent after the Cabinet Office said Japan’s economy contracted more than the government initially estimated.
South Korea’s Kospi Index fell 0.2 percent. Australia’s S&P/ASX 200 Index increased 1 percent.
Hong Kong’s Hang Seng Index rose 0.8 percent while the Hang Seng China Enterprises Index increased 1.5 percent after China’s inflation eased to 6.2 percent last month from a three-year high the month before. China’s Shanghai Composite Index rose 0.8 percent.
To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED
Wednesday, September 7, 2011
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
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
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
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Tuesday, September 6, 2011
Asian Stocks Rebound From Three-Day Drop as Aussie, Metals Prices Advance By Shiyin Chen - Sep 6, 2011
Asian stocks rebounded from a three- day drop that left valuations at the cheapest level since 2008, and copper rose for the first time in five days. The Australian dollar gained after the economy grew at a faster-than-forecast pace and Treasury 10-year yields climbed above 2 percent.
The MSCI Asia Pacific Index added 1.3 percent at 12:06 p.m. in Tokyo. Standard & Poor’s 500 Index futures gained 0.5 percent. Copper increased 0.6 percent and oil advanced 0.4 percent. The Dollar Index snapped a six-day rally and the Aussie jumped 0.8 percent. The Swiss franc was little changed against the euro at 1.2047 after sinking as much as 9.9 percent yesterday. Treasury 10-year yields rose three basis points.
Valuations on MSCI’s Asia Pacific Index fell to 11.7 times estimated profits yesterday, the lowest level since November 2008, amid a sell-off that has wiped out $2.5 trillion from global equity values this month. Data today showed Australia’s economy grew at a faster-than-forecast 1.2 percent last quarter. The Federal Reserve will release its Beige Book survey of the U.S. economy today, while President Barack Obama will address Congress tomorrow on his plan to boost job growth.
“Asia was already quite cheap and after the drop in August, it looks even cheaper,” Wilfred Sit, Asia chief investment officer for Baring Asset Management, said in a Bloomberg Television interview from Hong Kong. “Over the long term, Asia’s fundamentals remain very strong but there’s still a possibility of macro shocks.”
Stocks Rebound
Seven shares advanced for every one that declined on MSCI’s Asia Pacific Index, helping the gauge pare its loss this year to 12 percent. Japan’s Nikkei 225 (NKY) Stock Average rallied 1.4 percent after retreating yesterday to its lowest level since April 2009. South Korea’s Kospi Index jumped 1.9 percent, Taiwan’s Taiex Index added 1.2 percent, while Australia’s S&P/ASX 200 Index climbed 2.1 percent.
Hyundai Motor Co. (005380) rallied 2.1 percent after Chang Kyun Han, president of its European operations, said the company aims to increase its European market share to 3 percent this year from the 2.8 percent it had in the first half by selling more than 400,000 vehicles. Hynix Semiconductor Inc. and Elpida Memory Inc. jumped more than 5.5 percent each, pacing gains among exporters.
S&P 500 futures expiring in September indicate the U.S. stocks gauge may rebound from its three-day, 4.4 percent slump. The index fell as much as 2.9 percent yesterday before closing 0.7 percent lower. A private report showed U.S. services industries grew faster than the median forecast of economists in a Bloomberg survey.
Obama’s Plan
Obama is set to explain his plans in a Sept. 8 address to Congress as unemployment remains at 9.1 percent more than two years after the recession’s official end. Chicago Fed President Charles Evans is scheduled to speak in London today, while Chairman Ben S. Bernanke will speak on the U.S. economic outlook tomorrow in Minneapolis. Treasury 10-year notes fell for the first time in a week, sending yields up to 2.03 percent.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.2 percent after climbing 2.9 percent in the previous six sessions amid signs growth in the world’s largest economy is stalling and on concern Europe’s sovereign-debt crisis is worsening. The dollar weakened to $1.4030 per euro from $1.3998 yesterday. It slipped 0.3 percent to 77.41 yen, following a 1 percent jump yesterday.
“The dollar tends to weaken when appetite for risk increases because it’s a currency that’s preferred when people are risk averse,” said Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG.
Australia’s Growth
The Aussie strengthened after today’s gross domestic product report. The economy was forecast to have expanded 1 percent in the second quarter from the previous three months, according to the median forecast of 25 estimates in a Bloomberg News survey.
The cost of protecting Asia-Pacific corporate and sovereign bonds from default dropped, with the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan decreasing 4 basis points to 160.5 basis points, Royal Bank of Scotland Group Plc prices show. The index is on course for its first decline since Sept. 1, according to data provider CMA, which is owned by CME Group Inc. and compiles credit-default swap prices quoted by dealers in the privately negotiated market.
The Markit iTraxx Japan index decreased 4 basis points to 151, Deutsche Bank AG prices show, while the Markit iTraxx Australia index declined 3 basis points to 177 basis points, according to Credit Agricole CIB. Both indexes are also headed for the first decline since Sept. 1, CMA prices in New York show.
Copper for three-month delivery rose 0.5 percent to $8,985 a metric ton on the London Metal Exchange, following a four-day, 3.7 percent loss. Nickel climbed 1.8 percent, also gaining for the first time in five days.
Crude gained 0.4 percent to $86.33 in New York, rebounding from the lowest level in more than a week. October futures had dropped 3.2 percent in the previous two day.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
The MSCI Asia Pacific Index added 1.3 percent at 12:06 p.m. in Tokyo. Standard & Poor’s 500 Index futures gained 0.5 percent. Copper increased 0.6 percent and oil advanced 0.4 percent. The Dollar Index snapped a six-day rally and the Aussie jumped 0.8 percent. The Swiss franc was little changed against the euro at 1.2047 after sinking as much as 9.9 percent yesterday. Treasury 10-year yields rose three basis points.
Valuations on MSCI’s Asia Pacific Index fell to 11.7 times estimated profits yesterday, the lowest level since November 2008, amid a sell-off that has wiped out $2.5 trillion from global equity values this month. Data today showed Australia’s economy grew at a faster-than-forecast 1.2 percent last quarter. The Federal Reserve will release its Beige Book survey of the U.S. economy today, while President Barack Obama will address Congress tomorrow on his plan to boost job growth.
“Asia was already quite cheap and after the drop in August, it looks even cheaper,” Wilfred Sit, Asia chief investment officer for Baring Asset Management, said in a Bloomberg Television interview from Hong Kong. “Over the long term, Asia’s fundamentals remain very strong but there’s still a possibility of macro shocks.”
Stocks Rebound
Seven shares advanced for every one that declined on MSCI’s Asia Pacific Index, helping the gauge pare its loss this year to 12 percent. Japan’s Nikkei 225 (NKY) Stock Average rallied 1.4 percent after retreating yesterday to its lowest level since April 2009. South Korea’s Kospi Index jumped 1.9 percent, Taiwan’s Taiex Index added 1.2 percent, while Australia’s S&P/ASX 200 Index climbed 2.1 percent.
Hyundai Motor Co. (005380) rallied 2.1 percent after Chang Kyun Han, president of its European operations, said the company aims to increase its European market share to 3 percent this year from the 2.8 percent it had in the first half by selling more than 400,000 vehicles. Hynix Semiconductor Inc. and Elpida Memory Inc. jumped more than 5.5 percent each, pacing gains among exporters.
S&P 500 futures expiring in September indicate the U.S. stocks gauge may rebound from its three-day, 4.4 percent slump. The index fell as much as 2.9 percent yesterday before closing 0.7 percent lower. A private report showed U.S. services industries grew faster than the median forecast of economists in a Bloomberg survey.
Obama’s Plan
Obama is set to explain his plans in a Sept. 8 address to Congress as unemployment remains at 9.1 percent more than two years after the recession’s official end. Chicago Fed President Charles Evans is scheduled to speak in London today, while Chairman Ben S. Bernanke will speak on the U.S. economic outlook tomorrow in Minneapolis. Treasury 10-year notes fell for the first time in a week, sending yields up to 2.03 percent.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.2 percent after climbing 2.9 percent in the previous six sessions amid signs growth in the world’s largest economy is stalling and on concern Europe’s sovereign-debt crisis is worsening. The dollar weakened to $1.4030 per euro from $1.3998 yesterday. It slipped 0.3 percent to 77.41 yen, following a 1 percent jump yesterday.
“The dollar tends to weaken when appetite for risk increases because it’s a currency that’s preferred when people are risk averse,” said Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG.
Australia’s Growth
The Aussie strengthened after today’s gross domestic product report. The economy was forecast to have expanded 1 percent in the second quarter from the previous three months, according to the median forecast of 25 estimates in a Bloomberg News survey.
The cost of protecting Asia-Pacific corporate and sovereign bonds from default dropped, with the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan decreasing 4 basis points to 160.5 basis points, Royal Bank of Scotland Group Plc prices show. The index is on course for its first decline since Sept. 1, according to data provider CMA, which is owned by CME Group Inc. and compiles credit-default swap prices quoted by dealers in the privately negotiated market.
The Markit iTraxx Japan index decreased 4 basis points to 151, Deutsche Bank AG prices show, while the Markit iTraxx Australia index declined 3 basis points to 177 basis points, according to Credit Agricole CIB. Both indexes are also headed for the first decline since Sept. 1, CMA prices in New York show.
Copper for three-month delivery rose 0.5 percent to $8,985 a metric ton on the London Metal Exchange, following a four-day, 3.7 percent loss. Nickel climbed 1.8 percent, also gaining for the first time in five days.
Crude gained 0.4 percent to $86.33 in New York, rebounding from the lowest level in more than a week. October futures had dropped 3.2 percent in the previous two day.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Sunday, September 4, 2011
Oil Drops a Second Day on Signs Economic Growth Slowing in U.S. and China By Ben Sharples - Sep 4, 2011
Oil declined for a second day in New York as investors speculated that signs the U.S. and Chinese economies are weakening indicate fuel demand will falter in the world’s biggest crude-consuming nations.
Futures slipped as much as 0.9 percent, extending a 2.8 percent slide on Sept. 2. Chinese services slowed in August while U.S. employment stagnated, reports showed last week. Crude also fell as Exxon Mobil Corp. and Royal Dutch Shell Plc returned workers to some oil and natural gas platforms after Tropical Storm Lee moved out of the Gulf of Mexico. London-traded Brent narrowed its premium to U.S. prices.
“The sentiment is negative as a result of the employment data and people are starting to think the economy is kaput,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “Equity prices are under pressure, crude is under pressure. Confidence will have to be rebuilt.”
Crude for October delivery fell as much as 77 cents to $85.68 a barrel in electronic trading on the New York Mercantile Exchange, and was at $85.84 at 11:23 a.m. Sydney time. The contract dropped $2.48, or 2.8 percent, to $86.45 on Sept. 2. Prices are up 16 percent the past year. There will be no Nymex floor trading today because of the Labor Day holiday.
Brent oil for October settlement decreased 76 cents, or 0.7 percent, to $111.57 on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $25.78 to U.S. futures, compared with a record close of $26.21 on Aug. 19.
Employment, Services
U.S. payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was smaller than initially estimated, the Labor Department said in Washington. The median forecast in a Bloomberg News survey called for a gain of 68,000.
“Oil futures fell on the weaker U.S. data,” economists at Australia & New Zealand Banking Group Ltd., led by Warren Hogan, said in a note today. The bank estimates New York oil will average $100 a barrel in the third quarter. “The potential for some resurrection in the U.S. labor market now increasingly looks reliant on further policy stimulus.”
China’s purchasing managers’ index of non-manufacturing industries dipped to 57.6 from 59.6 in July, the China Federation of Logistics and Purchasing said on its website. A reading above 50 indicates expansion.
Oil Bets
Hedge funds boosted bullish bets on oil by the most since March as Hurricane Irene took aim at the U.S. East Coast, threatening imports, pipelines and refineries. The funds and other large speculators increased wagers that prices will rise by 13 percent in the week ended Aug. 30 to the highest level since July 26, according to the Commodity Futures Trading Commission’s Sept. 2 Commitments of Traders report.
Lee picked up speed and began a move toward the waterlogged U.S. Northeast after making landfall and soaking Louisiana yesterday. The storm was about 30 miles (50 kilometers) north- northeast of Lafayette, Louisiana, moving north at 5 miles per hour as of 4 p.m. local time, the U.S. National Hurricane Center said in its latest advisory.
Crews are resuming production in the western Gulf after inspecting equipment for damage, David Eglinton, a spokesman for Exxon Mobil, based in Irving, Texas, said yesterday in an e- mail. Shell confirmed it began returning staff after evacuating as many as 858 workers.
Tropical-storm force winds remain in the Gulf of Mexico, where 60 percent of oil production and 44 percent of natural gas output is halted, the Bureau of Ocean Energy Management, Regulation and Enforcement said on its website yesterday.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Futures slipped as much as 0.9 percent, extending a 2.8 percent slide on Sept. 2. Chinese services slowed in August while U.S. employment stagnated, reports showed last week. Crude also fell as Exxon Mobil Corp. and Royal Dutch Shell Plc returned workers to some oil and natural gas platforms after Tropical Storm Lee moved out of the Gulf of Mexico. London-traded Brent narrowed its premium to U.S. prices.
“The sentiment is negative as a result of the employment data and people are starting to think the economy is kaput,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “Equity prices are under pressure, crude is under pressure. Confidence will have to be rebuilt.”
Crude for October delivery fell as much as 77 cents to $85.68 a barrel in electronic trading on the New York Mercantile Exchange, and was at $85.84 at 11:23 a.m. Sydney time. The contract dropped $2.48, or 2.8 percent, to $86.45 on Sept. 2. Prices are up 16 percent the past year. There will be no Nymex floor trading today because of the Labor Day holiday.
Brent oil for October settlement decreased 76 cents, or 0.7 percent, to $111.57 on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $25.78 to U.S. futures, compared with a record close of $26.21 on Aug. 19.
Employment, Services
U.S. payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was smaller than initially estimated, the Labor Department said in Washington. The median forecast in a Bloomberg News survey called for a gain of 68,000.
“Oil futures fell on the weaker U.S. data,” economists at Australia & New Zealand Banking Group Ltd., led by Warren Hogan, said in a note today. The bank estimates New York oil will average $100 a barrel in the third quarter. “The potential for some resurrection in the U.S. labor market now increasingly looks reliant on further policy stimulus.”
China’s purchasing managers’ index of non-manufacturing industries dipped to 57.6 from 59.6 in July, the China Federation of Logistics and Purchasing said on its website. A reading above 50 indicates expansion.
Oil Bets
Hedge funds boosted bullish bets on oil by the most since March as Hurricane Irene took aim at the U.S. East Coast, threatening imports, pipelines and refineries. The funds and other large speculators increased wagers that prices will rise by 13 percent in the week ended Aug. 30 to the highest level since July 26, according to the Commodity Futures Trading Commission’s Sept. 2 Commitments of Traders report.
Lee picked up speed and began a move toward the waterlogged U.S. Northeast after making landfall and soaking Louisiana yesterday. The storm was about 30 miles (50 kilometers) north- northeast of Lafayette, Louisiana, moving north at 5 miles per hour as of 4 p.m. local time, the U.S. National Hurricane Center said in its latest advisory.
Crews are resuming production in the western Gulf after inspecting equipment for damage, David Eglinton, a spokesman for Exxon Mobil, based in Irving, Texas, said yesterday in an e- mail. Shell confirmed it began returning staff after evacuating as many as 858 workers.
Tropical-storm force winds remain in the Gulf of Mexico, where 60 percent of oil production and 44 percent of natural gas output is halted, the Bureau of Ocean Energy Management, Regulation and Enforcement said on its website yesterday.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Friday, September 2, 2011
Asian Stocks Pare Monthly Slump on U.S. Data Before Jobs Report
By Shani Raja - Sep 2, 2011
Asian stocks rose this week, with a regional benchmark index paring the biggest monthly slump since May 2010, as exporters and commodity producers climbed on optimism the U.S. and Chinese economies are recovering.
Li & Fung Ltd. (494), a supplier of toys and clothes to Wal-Mart Stores Inc., jumped 4.9 percent in Hong Kong after U.S. reports showing higher factory orders and consumer spending tempered concern that an economic recovery is faltering. Jiangxi Copper Co. advanced 10 percent as Chinese manufacturing expanded. Stocks fell Sept. 2 ahead of a U.S. jobs report that showed employment growth stagnated in August, paring the MSCI Asia Pacific Index’s greatest weekly gain since March.
“Concern about the health of the U.S. economy was near the top of the laundry list of worries for investors,” said Prasad Patkar, who helps manage the equivalent of $1.1 billion at Platypus Asset Management Ltd. in Sydney. “If the data keeps reinforcing the idea that a new recession is unlikely, markets could rally strongly this quarter. The latest manufacturing data confirms that China’s economy was never headed for a hard landing.”
The MSCI Asia Pacific Index rose 3.2 percent this week to 124.16, extending last week’s 0.7 percent advance. The gauge tumbled 14 percent in the previous four weeks as equity indexes in Australia, Hong Kong and Shanghai entered so-called bear markets, tumbling at least 20 percent from their peaks. The stocks rout was fueled by concern Europe’s debt crisis is worsening and after a U.S. credit rating downgrade by Standard & Poor’s.
S&P 500, Stoxx 600
Stocks in the Asian benchmark are valued at about 12.2 times estimated earnings on average, compared with 11.7 times for the S&P 500 and 9.7 times for the Stoxx 600.
Japan’s Nikkei 225 (NKY) Stock Average gained 1.7 percent this week and South Korea’s Kospi Index (KOSPI) jumped 5 percent. Australia’s S&P/ASX 200 Index advanced 1 percent in Sydney.
Hong Kong’s Hang Seng Index (HSI) surged 3.2 percent. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong climbed 3.5 percent after a report showed the nation’s manufacturing expanded at a faster pace in August. Chinese manufacturing increased from a 29-month low, indicating that the economy is withstanding attempts to cool prices.
China’s government has raised interest rates five times since the start of 2010 and boosted reserve requirements for banks to help control inflation. Stabilizing prices is the country’s top priority and the government doesn’t plan to alter the direction of economic policies, Premier Wen Jiabao said in an article that appeared Sept. 1 on the website of the Communist Party’s Qiushi magazine.
Economic Growth
China stock indexes may rise less than earlier estimated this year, Credit Suisse Group AG analysts wrote in a report this week, citing slower economic and corporate earnings growth. The Hang Seng China Enterprises Index estimate was lowered to 13,000 from 15,000.
Asian stocks climbed this week after reports showed U.S. consumer spending and car sales increased, while business activity and factory orders expanded at a faster pace than economists forecast. That bolstered gains after Federal Reserve Chairman Ben S. Bernanke said Aug. 26 that the nation’s central bank has more means to prop up growth if required.
The MSCI Asia Pacific index pared gains on Sept. 2 ahead of a report that showed the U.S. jobless rate remained at 9.1 percent, and after UBS AG lowered its year-end target for the MSCI Asia Pacific Index Excluding Japan Index by 13 percent. The bank said equities remain “broadly out of favor” amid signs global economic growth is slowing.
U.S. Revenue
Li & Fung, which gets about 65 percent of its revenue in the U.S., gained 4.9 percent to HK$13.84 in Hong Kong this week. Cathay Pacific Airways Ltd. (293), Asia’s largest international carrier, rose 3.7 percent to HK$15.74.
James Hardie Industries SE (JHX), a building materials supplier that gets almost 68 percent of sales from the U.S., gained 4.9 percent to A$6.03 in Sydney. Honda climbed 2.5 percent to 2,507 yen in Tokyo, and South Korean exporter Samsung Electronics Co. jumped 5.9 percent to 769,000 won.
Mining and energy stocks advanced as New York-traded crude oil climbed 1.3 percent in the week, while the London Metal Index of prices for six metals, including copper and aluminum, advanced 0.4 percent.
Rio Tinto Group added 4.2 percent to A$72.05 in Sydney and BHP Billiton Ltd. (BHP), the world’s No. 1 mining company and Australia’s biggest oil producer, rose 1 percent to A$39.04. In Hong Kong, Jiangxi Copper Co., China’s No. 1 producer of the metal, gained 10 percent to HK$21.95 and Chinese oil explorer Cnooc Ltd. (883) surged 7.2 percent to HK$15.44.
Coal Producer
Among other Asian stocks that rose this week, China Shenhua Energy Co., a unit of the country’s largest coal producer, advanced 2.7 percent to HK$34.75 after reporting higher profit. Shimao Property Holdings Ltd. (813), a China-based developer, advanced 14 percent to HK$8.55 after first-half net income increased 57 percent from a year earlier.
Fanuc Corp. (6954), a maker of industrial robots, gained 2.5 percent to 12,570 yen in Tokyo after JPMorgan Chase & Co, named the company its “top pick” among Japanese machinery manufacturers whose earning may benefit from growth in emerging markets. Komatsu Ltd. (6301), which counts China as its biggest market, increased 5.1 percent to 2,086 yen after the investment bank gave it a new “overweight” rating.
Belle International Holdings Ltd. (1880), China’s largest retailer of women’s shoes, climbed 5.2 percent to HK$16.22 in Hong Kong on optimism the mainland’s economy is withstanding anti- inflation measures after a Chinese manufacturing index climbed to 50.9 in August from 50.7 in July. Tencent Holdings Ltd. (700), the nation’s biggest Internet company by revenue, advanced 6.8 percent to HK$187.30.
“The manufacturing data will remove concerns the slowdown in economic growth will be dramatic,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “The economic slowdown will be moderate this year and that will provide support for stocks.”
To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
By Shani Raja - Sep 2, 2011
Asian stocks rose this week, with a regional benchmark index paring the biggest monthly slump since May 2010, as exporters and commodity producers climbed on optimism the U.S. and Chinese economies are recovering.
Li & Fung Ltd. (494), a supplier of toys and clothes to Wal-Mart Stores Inc., jumped 4.9 percent in Hong Kong after U.S. reports showing higher factory orders and consumer spending tempered concern that an economic recovery is faltering. Jiangxi Copper Co. advanced 10 percent as Chinese manufacturing expanded. Stocks fell Sept. 2 ahead of a U.S. jobs report that showed employment growth stagnated in August, paring the MSCI Asia Pacific Index’s greatest weekly gain since March.
“Concern about the health of the U.S. economy was near the top of the laundry list of worries for investors,” said Prasad Patkar, who helps manage the equivalent of $1.1 billion at Platypus Asset Management Ltd. in Sydney. “If the data keeps reinforcing the idea that a new recession is unlikely, markets could rally strongly this quarter. The latest manufacturing data confirms that China’s economy was never headed for a hard landing.”
The MSCI Asia Pacific Index rose 3.2 percent this week to 124.16, extending last week’s 0.7 percent advance. The gauge tumbled 14 percent in the previous four weeks as equity indexes in Australia, Hong Kong and Shanghai entered so-called bear markets, tumbling at least 20 percent from their peaks. The stocks rout was fueled by concern Europe’s debt crisis is worsening and after a U.S. credit rating downgrade by Standard & Poor’s.
S&P 500, Stoxx 600
Stocks in the Asian benchmark are valued at about 12.2 times estimated earnings on average, compared with 11.7 times for the S&P 500 and 9.7 times for the Stoxx 600.
Japan’s Nikkei 225 (NKY) Stock Average gained 1.7 percent this week and South Korea’s Kospi Index (KOSPI) jumped 5 percent. Australia’s S&P/ASX 200 Index advanced 1 percent in Sydney.
Hong Kong’s Hang Seng Index (HSI) surged 3.2 percent. The Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong climbed 3.5 percent after a report showed the nation’s manufacturing expanded at a faster pace in August. Chinese manufacturing increased from a 29-month low, indicating that the economy is withstanding attempts to cool prices.
China’s government has raised interest rates five times since the start of 2010 and boosted reserve requirements for banks to help control inflation. Stabilizing prices is the country’s top priority and the government doesn’t plan to alter the direction of economic policies, Premier Wen Jiabao said in an article that appeared Sept. 1 on the website of the Communist Party’s Qiushi magazine.
Economic Growth
China stock indexes may rise less than earlier estimated this year, Credit Suisse Group AG analysts wrote in a report this week, citing slower economic and corporate earnings growth. The Hang Seng China Enterprises Index estimate was lowered to 13,000 from 15,000.
Asian stocks climbed this week after reports showed U.S. consumer spending and car sales increased, while business activity and factory orders expanded at a faster pace than economists forecast. That bolstered gains after Federal Reserve Chairman Ben S. Bernanke said Aug. 26 that the nation’s central bank has more means to prop up growth if required.
The MSCI Asia Pacific index pared gains on Sept. 2 ahead of a report that showed the U.S. jobless rate remained at 9.1 percent, and after UBS AG lowered its year-end target for the MSCI Asia Pacific Index Excluding Japan Index by 13 percent. The bank said equities remain “broadly out of favor” amid signs global economic growth is slowing.
U.S. Revenue
Li & Fung, which gets about 65 percent of its revenue in the U.S., gained 4.9 percent to HK$13.84 in Hong Kong this week. Cathay Pacific Airways Ltd. (293), Asia’s largest international carrier, rose 3.7 percent to HK$15.74.
James Hardie Industries SE (JHX), a building materials supplier that gets almost 68 percent of sales from the U.S., gained 4.9 percent to A$6.03 in Sydney. Honda climbed 2.5 percent to 2,507 yen in Tokyo, and South Korean exporter Samsung Electronics Co. jumped 5.9 percent to 769,000 won.
Mining and energy stocks advanced as New York-traded crude oil climbed 1.3 percent in the week, while the London Metal Index of prices for six metals, including copper and aluminum, advanced 0.4 percent.
Rio Tinto Group added 4.2 percent to A$72.05 in Sydney and BHP Billiton Ltd. (BHP), the world’s No. 1 mining company and Australia’s biggest oil producer, rose 1 percent to A$39.04. In Hong Kong, Jiangxi Copper Co., China’s No. 1 producer of the metal, gained 10 percent to HK$21.95 and Chinese oil explorer Cnooc Ltd. (883) surged 7.2 percent to HK$15.44.
Coal Producer
Among other Asian stocks that rose this week, China Shenhua Energy Co., a unit of the country’s largest coal producer, advanced 2.7 percent to HK$34.75 after reporting higher profit. Shimao Property Holdings Ltd. (813), a China-based developer, advanced 14 percent to HK$8.55 after first-half net income increased 57 percent from a year earlier.
Fanuc Corp. (6954), a maker of industrial robots, gained 2.5 percent to 12,570 yen in Tokyo after JPMorgan Chase & Co, named the company its “top pick” among Japanese machinery manufacturers whose earning may benefit from growth in emerging markets. Komatsu Ltd. (6301), which counts China as its biggest market, increased 5.1 percent to 2,086 yen after the investment bank gave it a new “overweight” rating.
Belle International Holdings Ltd. (1880), China’s largest retailer of women’s shoes, climbed 5.2 percent to HK$16.22 in Hong Kong on optimism the mainland’s economy is withstanding anti- inflation measures after a Chinese manufacturing index climbed to 50.9 in August from 50.7 in July. Tencent Holdings Ltd. (700), the nation’s biggest Internet company by revenue, advanced 6.8 percent to HK$187.30.
“The manufacturing data will remove concerns the slowdown in economic growth will be dramatic,” said Li Jun, a strategist at Central China Securities Co. in Shanghai. “The economic slowdown will be moderate this year and that will provide support for stocks.”
To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Thursday, September 1, 2011
Asia Stocks Snap Six-Day Win Streak
By Jonathan Burgos and Shani Raja - Sep 1, 2011
Asian stocks snapped a six-day streak of advances ahead of reports expected to show the U.S. jobless rate remained above 9 percent, adding to signs growth in the world’s largest economy is weakening.
Sony Corp., Japan’s biggest exporter of consumer electronics, declined 4.6 in Tokyo on speculation exports to the U.S. will fall. Toyota Motor Corp and Honda Motor Co. fell more than 1 percent after both the companies’ share of the U.S. vehicle market shrank last month. BHP Billiton Ltd., the world’s No. 1 mining company lost 1.5 percent in Sydney after a gauge of metal prices in London dropped.
The MSCI Asia Pacific Index slipped 0.8 percent to 124.48 as of 11:21 a.m. in Tokyo, paring this week’s advance to 3.5 percent. About two stocks fell for each that rose on the gauge. The measure slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating.
“The U.S. recovery remains anemic, with lingering concerns over job creation and house prices,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Expectations are relatively low for tonight’s jobs data.”
Japan’s Nikkei 225 (NKY) Stock Average dropped 1.1 percent. Australia’s S&P/ASX 200 Index fell 1.1 percent. South Korea’s Kospi Index lost 0.9 percent. Hong Kong’s Hang Seng Index decreased 0.8 percent.
U.S. Futures
Futures on the Standard & Poor’s 500 Index were little changed today. The index dropped 1.2 percent in New York yesterday, snapping a four-day advance, before a Labor Department report today that may show non-farm payrolls climbed by 68,000 in August after a 117,000 increase in July, according to the median forecast of economists surveyed by Bloomberg News. U.S. stocks rose as much as 0.9 earlier yesterday after a report showed manufacturing unexpectedly expanded.
Exporters declined on speculation shipments to the U.S., the biggest market for Asian products, will drop. Sony Corp., the maker of Bravia televisions and PlayStation game consoles, slumped 4.3 percent to 1,625 yen in Tokyo. Canon Inc., the world’s biggest camera maker, slid 1.1 percent to 3,585 yen. James Hardie Industries SE (JHX), a supplier of building materials that gets 68 percent of sales from the U.S., dropped 2.9 percent to A$5.98 in Sydney.
Toyota Motor Corp., the world’s biggest carmaker, dropped 1.4 percent to 2,715 yen. The company’s shipments to the U.S. fell 13 percent in August from a year earlier, reducing its market share to 12.1 percent, according to a report from Autodata Corp.
U.S. Car Sales
Honda Motor Co. declined 2.1 percent to 2,503 yen. The carmaker’s U.S. sales fell 24 percent from a year earlier, dragging its market share to 7.7 percent. Total U.S. sales of new cars and light trucks increased to 1.07 million August from 997,467 a year earlier, the report showed.
Gauges of consumer discretionary stocks, raw material producers and energy companies led the decline among the 10 industry groups in the MSCI Asia Pacific Index. All but one of the sub-indexes fell.
BHP Billiton dropped 1.5 percent to A$39.29 in Sydney. Rio Tinto Group, the world’s second-biggest mining company by sales, lost 0.9 percent to A$72.44. Mitsubishi Corp., the Japanese trading house that gets about 43 percent of revenue from commodities, decreased 1.7 percent to 1,819 yen in Tokyo.
The Thomson Reuters/Jefferies CRB Index of raw materials fell 0.6 percent yesterday. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum dropped 1.3 percent.
The MSCI Asia Pacific Index declined 8.9 percent this year through yesterday, compared with a 4.2 percent drop by the S&P 500 and a 13 percent loss by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.3 times estimated earnings on average, compared with 12.1 times for the S&P 500 and 9.9 times for the Stoxx 600.
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Asian stocks snapped a six-day streak of advances ahead of reports expected to show the U.S. jobless rate remained above 9 percent, adding to signs growth in the world’s largest economy is weakening.
Sony Corp., Japan’s biggest exporter of consumer electronics, declined 4.6 in Tokyo on speculation exports to the U.S. will fall. Toyota Motor Corp and Honda Motor Co. fell more than 1 percent after both the companies’ share of the U.S. vehicle market shrank last month. BHP Billiton Ltd., the world’s No. 1 mining company lost 1.5 percent in Sydney after a gauge of metal prices in London dropped.
The MSCI Asia Pacific Index slipped 0.8 percent to 124.48 as of 11:21 a.m. in Tokyo, paring this week’s advance to 3.5 percent. About two stocks fell for each that rose on the gauge. The measure slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating.
“The U.S. recovery remains anemic, with lingering concerns over job creation and house prices,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Expectations are relatively low for tonight’s jobs data.”
Japan’s Nikkei 225 (NKY) Stock Average dropped 1.1 percent. Australia’s S&P/ASX 200 Index fell 1.1 percent. South Korea’s Kospi Index lost 0.9 percent. Hong Kong’s Hang Seng Index decreased 0.8 percent.
U.S. Futures
Futures on the Standard & Poor’s 500 Index were little changed today. The index dropped 1.2 percent in New York yesterday, snapping a four-day advance, before a Labor Department report today that may show non-farm payrolls climbed by 68,000 in August after a 117,000 increase in July, according to the median forecast of economists surveyed by Bloomberg News. U.S. stocks rose as much as 0.9 earlier yesterday after a report showed manufacturing unexpectedly expanded.
Exporters declined on speculation shipments to the U.S., the biggest market for Asian products, will drop. Sony Corp., the maker of Bravia televisions and PlayStation game consoles, slumped 4.3 percent to 1,625 yen in Tokyo. Canon Inc., the world’s biggest camera maker, slid 1.1 percent to 3,585 yen. James Hardie Industries SE (JHX), a supplier of building materials that gets 68 percent of sales from the U.S., dropped 2.9 percent to A$5.98 in Sydney.
Toyota Motor Corp., the world’s biggest carmaker, dropped 1.4 percent to 2,715 yen. The company’s shipments to the U.S. fell 13 percent in August from a year earlier, reducing its market share to 12.1 percent, according to a report from Autodata Corp.
U.S. Car Sales
Honda Motor Co. declined 2.1 percent to 2,503 yen. The carmaker’s U.S. sales fell 24 percent from a year earlier, dragging its market share to 7.7 percent. Total U.S. sales of new cars and light trucks increased to 1.07 million August from 997,467 a year earlier, the report showed.
Gauges of consumer discretionary stocks, raw material producers and energy companies led the decline among the 10 industry groups in the MSCI Asia Pacific Index. All but one of the sub-indexes fell.
BHP Billiton dropped 1.5 percent to A$39.29 in Sydney. Rio Tinto Group, the world’s second-biggest mining company by sales, lost 0.9 percent to A$72.44. Mitsubishi Corp., the Japanese trading house that gets about 43 percent of revenue from commodities, decreased 1.7 percent to 1,819 yen in Tokyo.
The Thomson Reuters/Jefferies CRB Index of raw materials fell 0.6 percent yesterday. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum dropped 1.3 percent.
The MSCI Asia Pacific Index declined 8.9 percent this year through yesterday, compared with a 4.2 percent drop by the S&P 500 and a 13 percent loss by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.3 times estimated earnings on average, compared with 12.1 times for the S&P 500 and 9.9 times for the Stoxx 600.
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Subscribe to:
Posts (Atom)
Posts
