Asian Stocks Fall, led by Banks on Capital Concern; BHP Surges

By Jonathan Burgos and Shani Raja

March 9 (Bloomberg) -- Asian stocks declined as Shinsei Bank Ltd. sought to raise capital, offsetting advances by commodity companies on higher oil and copper prices.

Shinsei Bank Ltd., the Japanese lender partly owned by investor Christopher Flowers, slumped 7.5 percent after saying it plans to sell preferred securities. Honda Motor Co. Ltd., which gets half of its sales from North America, dropped 2.8 percent after U.S. unemployment jumped to the highest level in more than a quarter century. BHP Billiton Ltd., the world’s biggest mining company, climbed 5 percent in Sydney.

The MSCI Asia Pacific Index lost 0.7 percent to 71.48 as of 10:50 a.m. in Tokyo, with finance companies accounting for half the drop. The gauge has fallen 20 percent this year, extending last year’s record 43 slump as the global recession pummeled profits at companies including BHP and Honda.

“There’ll be a point when things do start to stabilize, but it’s hard to say where that level is,” said Paul Xiradis, who manages the equivalent of $8 billion as chief executive officer of Ausbil Dexia Ltd. in Sydney. “There are still enough things to worry about.”

Japan’s Nikkei 225 Stock Average fell 0.4 percent to 7,144.62, while Hong Kong’s Hang Seng Index lost 0.4 percent. Australia’s S&P/ASX 200 Index rose 0.2 percent.

Futures on the Standard & Poor’s 500 Index gained 0.2. The gauge rose 0.1 percent in New York on March 6 as energy stocks rallied on gains in crude oil. Gains were limited as a lower sales forecast for Apple Inc. added to concerns the global slowdown and credit turmoil will continue to erode profits.

U.S. Unemployment

“I don’t see the U.S. economy getting better for a long time,” Jim Rogers, chairman of Singapore-based Rogers Holdings, said in an interview today. “I hope the U.S. recovers in two years. That will be good news. It could be 10 years.”

Shinsei Bank slumped 7.5 percent to 74 yen in Tokyo. The lender announced the plan to sell preferred securities, without specifying the amount, after trading closed on March 6.

The company joins larger banks including Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. in raising capital as losses on investments sap their financial strength.

Mitsubishi UFJ, Japan’s biggest bank, lost 2.5 percent to 391 yen. Mizuho Financial, the country’s second-largest bank, fell 2.3 percent to 172 yen.

Honda Motor, the nation’s second-biggest automaker, declined 2.8 percent to 2,090 yen on concern demand in the U.S. will slow. Nissan Motor Co., Japan’s No. 3 automaker, dropped 3.1 percent to 316 yen.

The U.S. unemployment rate climbed to 8.1 percent in February, the Labor Department said on March 6, while economists had estimated 7.9 percent. Employers eliminated 651,000 jobs last month, and losses have now exceeded 600,000 for a third- straight month, the first time that’s happened since the tally began in 1939.

BHP, Australia’s largest oil producer, gained 5 percent to A$29.04. Rio Tinto Group, the world’s third-biggest mining company, climbed 4.6 percent to A$47.82.

Crude oil jumped 4.4 percent to $45.52 a barrel in New York on March 6, the highest settlement in almost six weeks. Copper added 2.2 percent.

To contact the reporters for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net.