Asian stocks fell, dragging down the MSCI Asia Pacific Index for the first time in six days, as higher-than-estimated unemployment in Japan and a poorer Macquarie Group earnings outlook overshadowed increased profit targets at Sony and Panasonic.
Mizuho Financial Group, Japan's third-largest lender by market value, lost 2.1 per cent amid concerns about the health of the world's second-largest economy. Macquarie, Australia's biggest investment bank, slumped 3.9 per cent after saying some of its businesses are set to report lower earnings. Sony and Panasonic, the world's largest consumer-electronics makers, climbed more than 3 per cent in Tokyo.
The MSCI Asia Pacific Index sank 0.5 per cent to 119.21 in Tokyo. Three stocks declined for each one that rose on the index, which climbed 1.5 per cent this week. The gauge has slumped 7.7 per cent from its high this year on April 15 on concern Europe's debt crisis and Chinese steps to curb property prices will slow global growth.
''Some investors are cautious,'' said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management, which oversees about $US104 billion. ''People cannot remove uncertainties about the future in terms of the macro economy.''
The Nikkei 225 Stock Average fell 1.5 per cent in Japan, where a government report also showed industrial production sank unexpectedly. Australia's S&P/ASX 200 Index lost 0.5 per cent. South Korea's Kospi Index declined 0.8 per cent. Hong Kong's Hang Seng Index dropped 0.3 per cent.
Japan's jobless rate
Futures on the US Standard & Poor's 500 lost 0.3 per cent. The gauge sank 0.4 per cent yesterday as earnings and forecasts at technology and consumer companies disappointed investors.
Japanese stocks fell after the statistics bureau reported the country's unemployment rate rose to a seven-month high of 5.3 per cent in June from 5.2 per cent a month earlier. The median forecast of economists surveyed by Bloomberg News was 5.2 per cent. Separately, the Trade Ministry said factory output dropped 1.5 per cent last month from May. Economists in a Bloomberg survey was for a 0.2 per cent increase.
Mizuho Financial decreased 2.1 per cent to 140 yen while Mitsubishi UFJ Financial Group, Japan's largest bank by market value, fell 1.6 per cent to 426 yen. Kobe Steel, the country's No. 4 steel mill, dropped 5.1 per cent. Asahi Glass dropped 2.5 per cent.
Macquarie lost 3.9 per cent to $36.88 after the investment bank said its advisory, securities, fixed income and commodities businesses are set to report lower earnings as global markets falter and deals dwindle. The outlook reverses Macquarie's April forecast that all businesses were likely to post improved results for the year to March 31, 2011. Westpac retreated 1 per cent to $24.01.
Sony rose 3.5 per cent to 2702 yen while Panasonic added 3.8 per cent to 1118 yen in Tokyo. Sony, which makes Bravia televisions, raised its full-year profit forecast 20 per cent, while Panasonic revised its projection by 70 per cent after they both reported first-quarter earnings that exceeded analysts' estimates. Both cited better-than expected sales of flat-panel TVs for the improved outlooks.