(Bloomberg, Sept 25, 2006) -- Asian stocks fell, led by Komatsu Ltd. and LG.Philips LCD Co., on concern slowing economic and profit growth in the U.S. will reduce consumer spending in the region's biggest export market.

``Exporters and companies related to capital spending are falling because of fears about the U.S. economic slowdown,'' said Naoki Fujiwara, who oversees $720 million at Shinkin Asset Management Co. in Tokyo. ``Numbers last week were disappointing and investors are nervous ahead of more figures due this week.''

Australia's Hardman Resources Ltd. jumped after it received a takeover bid from U.K.-based Tullow Oil Plc. Airlines including China Southern Airlines Co. and Asiana Airlines Inc. gained after crude oil prices fell to a six-month low.

The Morgan Stanley Capital International Asia-Pacific Index fell 0.2 percent to 126.56 at 2 p.m. in Tokyo, set for its lowest since Sept. 13.

Japan's Nikkei 225 Stock Average was little changed at 15,628.20, while the broader Topix index dropped 0.3 percent. Key indexes rose in South Korea, Hong Kong, Singapore, the Philippines and China. They fell elsewhere.

Komatsu, the world's second-largest maker of construction machinery, fell 3 percent to 1,940 yen. LG.Philips, the world's second-largest maker of liquid crystal displays, dropped 0.9 percent to 31,800 won.

Earnings growth at companies listed on the Standard & Poor's 500 Index will slow, rising 14.2 percent this quarter and 12.6 percent in the final three months of 2006, according to a Thomson Financial survey of analysts published on Sept. 22. Profits rose 16.3 percent in the three months ended on June 30. The U.S. is Asia's biggest export market.

`Negative' Sentiment

U.S. consumer spending slowed last month as home sales dropped, suggesting the housing slump is starting to ripple through the U.S. economy, reports this week may show.

A report later today from the National Association of Realtors will show U.S. sales of previously owned homes fell to an annual pace of 6.2 million in August from 6.33 million in July, economists project. Tomorrow, the Commerce Department is forecast to report new homes sold at a 1.04 million annual rate, down from July's 1.072 million.

Expansion in the world's largest economy will slow to 2.9 percent in 2007 from 3.4 percent this year, the International Monetary Fund estimated.

``Stocks will continue to be weak for the time being,'' said Norihiro Fujito, a strategist at Mitsubishi UFJ Securities Co. in Tokyo. ``A slowdown in the U.S. and negative investor sentiment beginning last week are the causes.''

Elpida, Creative

Elpida Memory Inc., Japan's largest memory chipmaker, slid 2.1 percent to 5,080 yen. Creative Technology Ltd., whose music players are losing market share to Apple Computer Inc.'s iPods, slid 1.9 percent to S$10.30.

Hardman, the worst performer on Australia's S&P/ASX 200 Energy Index in the past six months, soared 54 percent to A$2.02. Tullow Oil, a U.K.-based oil and gas explorer and producer, agreed to buy Hardman for about A$1.47 billion ($1.1 billion) or A$2.02 a share.

Hardman's board has agreed to the offer, Tullow said.

``Takeovers and rumors of takeovers have been flying left, right and center in the market for more than a month now, which is never a bad thing if you hold shares in the industries involved,'' said Lucinda Chan, head of Asian business at Macquarie Equities Ltd. in Sydney.

Woodside Petroleum Ltd. Australia's second-largest oil and gas producer, rose 1.4 percent to A$37.61. Santos Ltd., the third biggest, climbed 0.6 percent to A$10.71.

Airlines Climb

Airlines advanced on expectations that lower oil prices will help reduce fuel costs. China Southern, the nation's biggest carrier by fleet size, added 6.3 percent to 2.85 yuan. Asiana Airlines, South Korea's second-largest airline, rose 0.7 percent to 6,950 won.

Crude oil for November delivery fell 1.7 percent to $60.55 a barrel in New York on Sept. 22, after Iranian President Mahmoud Ahmadinejad said his country may consider discussions on its nuclear program, easing concern that supply will be disrupted. The contract recently traded at $60.01 a barrel in after-hours trading.
Source:Bloomberg
tag:economy