Asian Stocks Fall on Economic Growth Concern, Before BOJ

Asian stocks fell as worse-than- estimated U.S. economic data spurred concern about the pace of growth and as investors speculated the Bank of Japan (8301) won’t meet forecasts for monetary policy expansion.

Toyota Motor Corp., the world’s largest carmaker, declined 1.5 percent in Tokyo as the yen strengthened against the dollar. Mizuho Financial Group Inc., Japan’s third-biggest bank by market value, lost 1.5 percent ahead of the central bank decision today. BHP Billiton Ltd., the world’s No. 1 miner, retreated 1.2 percent in Sydney.

The MSCI Asia Pacific Index slid 0.8 percent to 133.90 as of 10:29 a.m. in Tokyo, with more than three shares falling for each that rose. The regional gauge climbed the past five months as Japanese shares increased on speculation the nation will deploy more stimulus and amid signs the U.S. economy is recovering. Markets in China, Hong Kong and Taiwan are closed today for a holiday.

“Caution has set in as disappointing economic data finally caught up with investors,” said Matthew Sherwood, head of investment markets research in Sydney at Perpetual Investments, which manages about $25 billion. “Any under-whelming policy response from the Bank of Japan, which is something the BOJ is notorious for, will be detrimental. It could be a bumpy end to the week.”

Japan’s Nikkei 225 Stock Average (NKY) sank 1.4 percent after yesterday posting its largest advance in eight weeks. Australia’s S&P/ASX 200 Index slid 0.4 percent, South Korea’s Kospi Index (KOSPI) retreated 1.3 percent and Singapore’s Straits Times Index lost 0.2 percent. New Zealand’s NZX 50 Index added 0.2 percent.

(Source: Bloomberg)