Feb. 24 (Bloomberg) -- Asian stocks fell, dragging the regional benchmark to the lowest in more than five years, as the deepening global recession hurts company earnings and forces companies to sell shares to bolster their balance sheets.
Nomura Holdings Inc., Japan’s largest brokerage, slumped 8.4 percent on concern it will sell $3.1 billion of stock at a discount. PetroChina Co., China’s largest oil producer, lost 4.7 percent in Hong Kong after crude oil dropped. Baoshan Iron & Steel Co., China’s largest steelmaker, slid 3.8 percent after UBS AG said producers had overestimated demand.
“Pessimism about company earnings hasn’t yet run its course,” said Naoyuki Torii, general manager of equities at Fukoku Mutual Life Insurance Co., which manages about $59 billion. “As massive losses are eating into companies’ capital, investors are expecting more businesses will sell new shares and dilute shareholders’ equity.”
The MSCI Asia Pacific Index fell 2.3 percent to 74.51 at 1:19 p.m. in Tokyo, set for its lowest close since Aug. 19, 2003. The MSCI World Index declined for an 11th day. The slump has wiped at least $2.7 trillion off the value of global stocks even as the U.S., China and Australia passed stimulus policies to bolster their economies. more...
Tidak ada komentar:
Posting Komentar