Most Asian Stocks Decline on Profit Concerns; Elpida Surges

By Jonathan Burgos and Shani Raja

April 22 (Bloomberg) -- Most Asian stocks fell as concern corporate earnings will disappoint countered gains by technology companies after Elpida Memory Inc. said it plans to raise memory-chip prices.

Takefuji Corp. sank 8.5 percent in Tokyo, pacing declines by financial companies, after Standard & Poor’s said interest refunds may force downgrades at Japan’s largest consumer lenders. Zhuzhou Smelter Group Co., China’s No. 1 refined zinc producer, sank 5.2 percent in Shanghai after profit plunged. KDDI Corp., Japan’s No. 2 mobile-phone carrier, dropped 3.9 percent as Deutsche Bank AG said the company’s growth is slowing. Elpida, Japan’s biggest computer-memory chip maker, surged 15 percent.

Five stocks declined for every four that advanced on the MSCI Asia Pacific Index, which lost 0.3 percent to 88.03 at 4:53 p.m. in Tokyo. The gauge has climbed 25 percent from a five-year low on March 9 amid speculation government measures will succeed in easing the global recession.

“When markets move so strongly there is some imperative to participate, but I don’t think there’s a great deal of clarity about where the post-crisis fundamentals are going to settle,” said Karma Wilson, Sydney-based head of Asian equities at AMP Capital Investors, which manages about $90 billion.

Japan’s Topix Index lost 0.1 percent, while Hong Kong’s Hang Seng Index fell 2.7 percent. China’s Shanghai Composite Index slipped 2.9 percent on speculation regulators will end a moratorium on initial share sales. All markets fell except South Korea, Taiwan, Thailand, the Philippines, Vietnam and Sri Lanka.

Aristocrat Leisure Ltd., the world’s second-largest maker of slot machines, tumbled 13 percent in Sydney after selling shares. Pioneer Corp., which makes car audio and navigation systems, climbed 17 percent in Tokyo after the Nikkei newspaper said Japan’s government may provide funds to the company.

Futures on the Standard & Poor’s 500 Index lost 0.8 percent. The gauge climbed 2.1 percent yesterday after Treasury Secretary Timothy Geithner said the vast majority of U.S. banks have more capital than they need to be considered well capitalized. The Federal Reserve is overseeing assessments of the health of the 19 biggest U.S. banks, with results to be released on May 4.

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