By Jonathan Burgos and Adam Haigh - Jun 19, 2012 7:34 AM GMT+0700
Asian stocks fell, with the regional benchmark index retreating from a one-month high, as Spain’s borrowing costs climbed to a euro-area record and optimism faded that Greece’s election will calm the debt crisis.
Canon Inc. (7751), a camera maker that depends on Europe for about a third of its sales, slid 1.7 percent in Tokyo. Asahi Co. dropped 1.3 percent after the bicycle retailer said profit fell. Woodside Petroleum Ltd., Australia’s second-largest oil producer, fell 1.4 percent as crude futures declined.
The MSCI Asia Pacific Index (MXAP) slipped 0.2 percent to 115.52 as of 9:27 a.m. in Tokyo, with about three shares falling for every two that rose. Over $5 trillion has been erased from global equities since March amid concern growth is slowing in the U.S. and China, and as Europe’s debt crisis intensified.
“We see Europe escalating rather than solving its problems,” said Tim Riordan, of Parker Asset Management Ltd., a hedge fund in Sydney that has about $200 million under management. “The focus is rolling on to Spain, and with bond yields going over 7 percent, this has been a red flag in the past. You’re in a bit of a downward spiral and this leads us to be fairly cautious.”
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Adam Haigh in Sydney at ahaigh1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
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