By Shani Raja
Nov. 18 (Bloomberg) -- Most Asian stocks fell as capital and share-sale concerns dragged banks and property companies lower, overshadowing advances among telecommunications companies.
HSBC Holdings Plc lost 0.9 percent, the biggest drag on Hong Kong’s Hang Seng Index, after its chairman said new capital rules may reduce credit in the economy. Developer Tokyo Tatemono Co. sank 17 percent in Tokyo on plans to sell 45.6 billion yen in shares. China Mobile Ltd. added 2.5 percent after saying its high-speed wireless service will have 3 million subscribers by the end of the year.
Five stocks declined for every four that advanced on the MSCI Asia Pacific Index, which was little changed at 118.65 as of 6:08 p.m. in Tokyo. The gauge has climbed 68 percent from a more than five-year low on March 9 as stimulus measures around the world helped revive the global economy.
“The economic data is saying we’re past the worst,” said Stephen Halmarick, Sydney-based head of investment-markets research at Colonial First State, which holds about $135 billion. “But the recovery process is still going to be painful and grinding.”
Japan’s Topix Index lost 0.8 percent, while the Nikkei 225 Stock Average fell 0.6 percent. Japan Airlines Corp., which is seeking a state bailout, fell 3.9 percent after Reuters reported the country’s transport minister as saying he wouldn’t rule out a bankruptcy of the airline.
Hong Kong’s Hang Seng Index declined 0.3 percent, as Hang Lung Properties Ltd., which gets 40 percent of its revenue in China, sank 3 percent after a Chinese central bank adviser said Shenzhen city will introduce a property tax.
Takeover Speculation
Australia’s S&P/ASX 200 Index rose 0.2 percent. Insurance Australia Group Ltd. added 2.3 percent amid takeover speculation. South Korea’s Kospi Index climbed 1.1 percent.
Futures on the Standard & Poor’s 500 Index were little changed. The gauge rose 0.1 percent yesterday, buoyed by commodity companies as oil and copper prices advanced.
The MSCI Asia Pacific Index has climbed 33 percent this year, on course for its steepest annual increase since 2003. It has outpaced gains of 23 percent by the S&P 500 and 26 percent for Europe’s Dow Jones Stoxx 600 Index. Stocks in the Asian index are valued at 22 times estimated earnings, compared with 18 times for the S&P and 16 times for the Stoxx 600.
In Hong Kong, HSBC, Europe’s largest lender, lost 0.9 percent to HK$96.50 as Chairman Stephen Green warned of the “unintended effects” from new rules to increase banks’ capital.
Capital Ratios
“Cumulative enhancement of capital ratios at the wrong stage of the economic cycle could easily withdraw credit from the economy and cause a new credit crunch,” Green said at a conference in London yesterday.
Governments around the world are seeking to strengthen lenders following the worst financial crisis since the Great Depression. Writedowns and losses from the credit crisis have risen to almost $1.7 trillion, according to data compiled by Bloomberg.
Mitsubishi UFJ Financial Group Inc., which reports earnings today, sank 0.6 percent to 484 yen in Tokyo after the Wall Street Journal reported that the bank is considering raising up to 1 trillion yen ($11.2 billion) from selling stock to bolster capital ratios. The paper cited a person familiar with the situation.
Tokyo Tatemono tumbled 17 percent to 323 yen, the biggest drop on the MSCI Asia Pacific Index today. The developer is planning to sell new shares to fund investments in rental property and to repay debt. Tokyu Land Corp. declined 11 percent to 292 yen.
“Concerns about capital increases spread through the real- estate industry after Tokyo Tatemono’s plan to raise capital,” said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd.
Property Tax
Hang Lung Properties lost 3 percent to HK$30.95, while China Overseas Land & Investment Ltd. fell 2.1 percent to HK$17.10. Sun Hung Kai Properties Ltd., the world’s largest developer by market value, slid 0.8 percent to HK$116.80.
The southern Chinese city of Shenzhen will introduce a property tax, central bank adviser Fan Gang said, adding that the move represented a “very important step” in balancing investment and consumption demand.
Japan Airlines slumped 3.9 percent to 98 yen after Reuters reported the comments from Transport Minister Seiji Maehara. Japan Air is seeking loans of 125 billion yen to maintain operations after posting a net loss of 131.2 billion yen for the six months ended Sept. 30.
In Sydney, Macarthur Coal Ltd., the world’s biggest exporter of pulverized coal, slumped 4.7 percent to A$9.70 after forecasting first-half profit may drop as much as 72 percent.
China Mobile
Insurance Australia gained 2.3 percent to A$4.01 after the Australian Financial Review reported QBE Insurance Group Ltd. is considering a takeover offer. QBE rose 2.5 percent to A$23.01 as spokeswomen for both companies declined to comment.
China Mobile, the world’s biggest phone company by market value, added 2.5 percent to HK$76.15. Chairman Wang Jianzhou said in Hong Kong today that its third-generation service will have 3 million subscribers by the end of the year. The company had 1.66 million users at the end of September.
STX Pan Ocean Co. climbed 1.9 percent to S$14.72 in Singapore after the Baltic Dry Index, a measure of shipping rates for commodities, advanced for a 14th day to the highest since September 2008.
Pacific Basin Shipping Ltd., Hong Kong’s largest operator of dry-bulk vessels, climbed 5.4 percent to HK$6.61. China Shipping Development Co., the dry-bulk arm of the nation’s second-biggest shipping group, advanced 5.6 percent to HK$12.40.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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