Most Asian Stocks Decline in Worst First Half Loss Since 1992

By Chen Shiyin and Chan Tien Hin

June 30 (Bloomberg) -- Most Asian stocks fell, putting the regional index on course for its worst first-half decline in 16 years, on speculation record oil prices will damp spending and after Citigroup Inc. said Asian markets will extend losses.

Samsung Electronics Co. led a drop in technology shares after Lehman Brothers Holdings Inc. cut its share-price target. Takashimaya Co. led Japanese retailers lower after reducing its full-year sales forecast. BHP Billiton Ltd., the world's largest mining company, gained after oil and metals advanced.

``The high inflationary environment'' is hurting Asian shares, said Scott Lim, who helps manage $431 million as chief investment officer at CMS Asset management Sdn. in Kuala Lumpur. ``Commodities are outperforming all asset classes right now.''

The MSCI Asia Pacific Index added 0.1 percent to 137.03 as of 3:18 p.m. in Tokyo as about five stocks fell for every four that rose and taking its first-half loss to 13 percent. That's the worst performance since a 23 percent decline in the same period of 1992, when Japan's asset bubble was deflating.

China's CSI 300 Index lost 1.9 percent today, poised for a 23 percent rout since the end of May and its worst month on record. Japan's Nikkei 225 Stock Average dropped 0.5 percent to 13,481.38. Indexes in Singapore, Indonesia and Vietnam posted the region's only gains.

U.S. stocks retreated on June 27, with the Dow Jones Industrial Average losing 0.9 percent. That left the 30-member index within 0.1 percent of a so-called bear market, defined as a 20 percent slump. Standard & Poor's 500 Index futures expiring in September rose 0.2 percent recently.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Chan Tien Hin in Kuala Lumpur thchan@bloomberg.net.
Last Updated: June 30, 2008 02:21 EDT