Asian Stocks Post Decline as Global Growth Concerns Intensify; Sony Falls

Asian stocks fell, dragging a regional stock index to its first weekly decline in more than a month, as concern intensified that global growth is slowing.

Sony Corp., an electronics maker that receives 22 percent of its sales from the U.S., fell 4.2 percent as the yen reached a 15-year high against the dollar, threatening to lower the value of export earnings. James Hardie Industries, the biggest seller of home siding in the U.S., tumbled 11 percent after a forecasting lower-than-estimated profit. PetroChina Co. lost 5.6 percent in Hong Kong as oil declined.

The MSCI Asia Pacific Index fell 3.7 percent this week to 117.86, for the first decline since the week to July 2. The index has slumped about 8.7 percent from its high this year on April 15 as Europe’s debt crisis, China’s measures to curb property-price inflation and disappointing economic reports in the U.S. fueled concern global growth may stall.

“A slowdown in the global economy is now obvious and that is cooling investor sentiment,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $5.8 billion. “There are no attractive positions to take right now in markets. We’re waiting for better economic data.”

Japan’s Nikkei 225 Stock Average sank 4 percent this week, as the yen’s strengthening against the dollar dragged the index briefly into a bear market, or 20 percent below its high this year on April 5.

Australia’s S&P/ASX 200 Index slid 2.3 percent. Hong Kong’s Hang Seng Index dropped 2.8 percent. China’s Shanghai Composite Index lost 1.9 percent after government showed the country’s industrial production and import growth slowed.

Yen Strengthens

Sony dropped 4.2 percent to 2,613 yen this week in Tokyo. Honda Motor Co., Japan’s second-largest carmaker, fell 4.2 percent to 2,789 yen, and Canon Inc., which receives more than 80 percent of its revenue abroad, slid 4.3 percent to 3,580 yen. Nintendo Co., which gets 47 percent of its sales from the Americas, tumbled 6.2 percent this week in Osaka to 22,600 yen.

The yen appreciated to as much as 84.73 against the dollar this week, the strongest level since July 5, 1995. A higher yen cuts the value of overseas income at Japanese companies when converted into their home currency.

“Investors are worried about the future of the U.S. economy,” said Naoteru Teraoka, who helps oversee about $22 billion in Tokyo at Chuo Mitsui Asset Management Co. “That drives up the yen, increasing uncertainty about the prospects for Japanese earnings.”

U.S. Growth Concerns

Concerns about economic growth faltering dragged down the MSCI Asia Pacific Index by as much as 9.6 percent this year. Companies in the gauge trade at almost 14 times estimated earnings. The ratio sank to 13.8 times on May 18, the lowest level since December 2008.

In the U.S., companies hired fewer workers than forecast in July, according to Labor Department data on Aug. 6. Separately, Goldman Sachs Group Inc. cut its 2011 growth forecasts for Japan and U.S. on Aug. 7.

James Hardie, the biggest seller of home siding in the U.S., tumbled 11 percent to A$5.57 this week in Sydney. The company said it will report full-year operating profit, excluding asbestos-related expenses, of between $110 million and $125 million, missing analyst expectations of $143 million to $164 million range.

Samsung Electronics Co., Asia’s biggest maker of semiconductors, declined 2.5 percent to 781,000 won this week in Seoul, while Hynix Semiconductor Inc., which receives almost a quarter of its sales in North America, lost 5.3 percent to 21,650 won.

Oil, Metals Decline

Commodity producers fell as growth concerns dragged on oil and metal prices. PetroChina Co., the country’s biggest oil producer, lost 5.6 percent to HK$8.61 in Hong Kong. Mitsubishi Corp., Japan’s biggest commodities trader, fell 5.6 percent to 1,856 yen this week in Tokyo. Rio Tinto Group, the world’s No. 3 mining company, dropped 2.4 percent to A$71.43 in Sydney.

Crude oil for September delivery fell 6.6 percent this week in New York. Copper futures for September delivery retreated 2.7 percent, and the London Metal Exchange Index of six metals lost 3.1 percent.

Chinese shipping stocks fell this week after the country’s customs bureau said on Aug. 10 imports grew 22.7 percent, down from 34.1 percent in June, signaling a diminished contribution to global growth.

China Cosco Holdings Co., the largest operator of dry-bulk ships, dropped 3 percent to 9.37 yuan in Shanghai. China Shipping Development Co., a unit of China’s second-biggest sea- cargo group, retreated 4 percent to 9.38 yuan.

“We’re waiting to see whether the Chinese government is going to engage in more tightening,” said Stephen Wood, who helps manage about $140 billion as chief market strategist for Russell Investments in New York. “China is still going to be a significant contributor to global growth, but it’s going to be slower.”