May 30 (Bloomberg) — China has no plan to introduce stimulus measures to support growth on the scale unleashed during the depths of the global credit crisis in 2008, according to the nation’s state-run Xinhua News Agency. Stephen Engle reports from Beijing on Bloomberg Television’s “On the Move Asia” with Rishaad Salamat. (Source: Bloomberg)
Asian stocks fell, with the regional
benchmark index headed for its biggest monthly drop since the
2008 financial crisis, as China damped optimism for large-scale
stimulus, adding to global growth concerns after Spain’s credit
rating was downgraded.
Samsung Electronics Co. (005930), an exporter of consumer
electronics that gets 47 percent of its sales in Europe and
China, lost 1 percent in Seoul. Industrial Commercial Bank of
China Ltd. slid 1.7 percent. Renesas Electronics Corp. (6723), the
world’s biggest maker of microcontrollers for cars, surged 27
percent in Tokyo after short-selling of its shares was
restricted.
The MSCI Asia Pacific Index declined 0.8 percent to 112.79
as of 5:16 p.m. in Tokyo with about two shares dropping for each
that rose. The gauge is headed for a 10 percent decline this
month amid signs of a deeper slowdown in China and as European
leaders pressure Greece to observe bailout terms before June
elections.
“Over the past 12 months, the Western world has been
trying to find holes in the China growth story,” said Khiem Do,
Hong Kong-based head of Asian multi-asset strategy at Baring
Asset Management (Asia) Ltd., which oversees about $8 billion.
“Investors are still not convinced about the debt crisis in
Europe and that’s being reflected in higher bond yields in Spain
and Italy. I think that’s the most significant risk from a
global investor view point.”
Japan’s Nikkei 225 Stock Average lost 0.3 percent with
volume 4.7 percent below the 30-day average, and Australia’s
SP/ASX 200 fell 0.5 percent. South Korea’s Kospi index dropped
0.3 percent. Taiwan’s Taiex Index (TWSE) slid 1.1 percent.
Futures on the Standard Poor’s 500 Index fell 0.7 percent
today. The gauge advanced 1.1 percent in New York yesterday,
trimming this month’s slump to 4.7 percent.
Hong Kong’s Hang Seng Index lost 1.9 percent. The Shanghai
Composite Index fell 0.2 percent.
Chinese Banks Decline
China lenders dropped in Hong Kong on a report the nation
has no plan to introduce stimulus measures on the scale deployed
during the global financial crisis to counter this year’s
economic slowdown, the official Xinhua News Agency said
yesterday without attributing the information.
“The Chinese authorities do see downside risk to growth
this year,” said Dwyfor Evans, a Hong-Kong based macro
strategist at State Street Global Markets, part of State Street
Corp., which has $1.9 trillion under management. “They will
continue addressing the slowdown, but it’s hard to assess if it
will be enough,” he said in a telephone interview from
Melbourne.
Banks Drop
Industrial Commercial Bank of China slid 1.7 percent to
HK$4.65. Bank of Communications Co. Ltd., a Chinese provider of
commercial banking services, lost 1.4 percent to HK$5.07 in Hong
Kong.
Agricultural Bank of China Ltd. slid 4 percent to HK$3.12
in Hong Kong after Caixin.com reported that the lender’s vice
president, Yang Kun, is under investigation by the Chinese
Communist Party’s Central Commission. The report cited
unidentified people.
Recent declines in equities dragged down the average price
of stocks on the MSCI Asia Pacific Index to 11.7 times estimated
earnings yesterday, compared with a multiple of 12.7 for the SP
500 and 10.1 for the Stoxx Europe 600 Index.
Asian shares also fell after Spain’s sovereign-credit
rating was cut by Egan-Jones Ratings Co. to B from BB- on the
country’s deteriorating economic outlook. Bank of Spain Governor
Miguel Angel Fernandez Ordonez resigned a month early amid
criticism over the May 9 nationalization of Bankia group,
Spain’s third-biggest lender.
Samsung Declines
Samsung Electronics dropped 1 percent to 1,226,000 won in
Seoul. Nippon Sheet Glass Co. (5202), a Japanese glassmaker that gets
39 percent of its sales in Europe, lost 3.6 percent to 81 yen.
Among other stocks that fell, Aozora Bank Ltd. lost the
most in more than a year after a report it withdrew plans to
announce a public-fund repayment proposal next month. The
Japanese lender, controlled by Cerberus Capital Management LP,
dropped 7.1 percent to 171 yen in Tokyo.
Renesas Electronics surged 27 percent to 260 yen after
climbing by the daily limit of 80 yen. Japan Securities Finance
Co., Japan’s biggest provider of loans for margin transactions,
restricted short-selling of the stock from today after shares
slumped 27 percent over the past two days. The company is said
to be planning to raise 100 billion yen ($1.26 billion).
To contact the reporters on this story:
Yoshiaki Nohara in Tokyo at
ynohara1@bloomberg.net;
Adam Haigh in Sydney at
ahaigh1@bloomberg.net
To contact the editor responsible for this story:
Nick Gentle at
ngentle2@bloomberg.net
Please enable JavaScript to view the comments powered by Disqus.
R Soft Web Hosting