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| Asian shares fall on fuel price hike, US sales | |
| Bloomberg / July 03, 2009, 0:46 IST | |
Asian stocks fell as a continued slump in US auto sales and an increase in Indian gas prices sparked concern car demand will falter.
Honda Motor Co, Japan’s no. 2 automaker, fell 2.3 per cent as US sales in June failed to climb above a 10 million annualised rate. Maruti Suzuki India Ltd, maker of half the nation’s cars, lost 2 per cent. Newcrest Mining Ltd, Australia’s largest gold producer, led metals producers higher as prices climbed. Cnooc Ltd, China’s no. 1 offshore oil producer, lost 1.8 per cent as a drop in US demand pushed fuel prices lower.
“Investors are feeling the global economy is getting better, but the hazy outlook means they can’t totally buy into this recovery story,” said Mitsushige Akino, who oversees the equivalent of $522 million at Ichiyoshi Investment Management Co.
The MSCI Asia Pacific Index slipped 0.4 per cent to 102.78 at 7.07 pm in Tokyo, with almost five shares retreating for every four that advanced. The measure rallied 15 per cent in the first six months of this year, outpacing gains by benchmark indexes in the US and Europe. Companies on the MSCI Asia gauge are valued at 23.4 times estimated earnings, up from as low as 14 in January this year.
Japan’s Nikkei 225 Stock Average fell 0.6 per cent, led by banks after Shinsei Bank Ltd and Aozora Bank Ltd detailed their planned merger.
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