Most Asian stocks fell as an unexpected drop in US consumer confidence dragged down shares in raw-material producers.
BHP Billiton, Australia's largest oil company, fell 0.6 per cent and Rio Tinto, the world's third-biggest mining company, lost 1.1 per cent in Sydney. Posco, South Korea's No. 1 steelmaker, sank 1.6 per cent in Seoul. Telstra, Australia's No. 1 telephone company, climbed 1.4 per cent following its biggest weekly decline in three.
Nine stocks declined for every seven that rose in the MSCI Asia Pacific excluding Japan Index, which was little changed at 434.91 in Hong Kong before a report today that may show US builders remained pessimistic in September. Japanese markets are closed today for a holiday.
“The recovery is taking longer than people had anticipated and so you've got confidence still remaining difficult,” said Matt Riordan, who helps manage about $US5.2 billion at Paradice Investment Management in Sydney. “Everyone in general expects a better year, but we're still waiting for the consumer to come around to that.”
Australia's S&P/ASX 200 Index fell 0.7 per cent and South Korea's Kospi index declined 0.4 per cent.
Federal reserve targets
Futures on the Standard & Poor's 500 Index gained 0.3 per cent. The gauge rose 0.1 per cent in New York on September 17 as better-than-estimated earnings at technology companies overshadowed the consumer confidence report.
A gauge of raw-material producers in the MSCI Asia Pacific excluding Japan Index lost 0.2 per cent, the most of 10 industry groups, amid concerns over commodities demand. The Federal Reserve is likely to lower its forecasts for US economic growth at a policy meeting this week, Mohamed A El-Erian, chief executive officer at Pacific Investment Management, wrote in a comment piece published on ft.com's ftalphaville section.
BHP Billiton, Australia's largest oil producer, lost 0.6 per cent to $38.65 after crude-oil futures declined 1.2 per cent to $US73.66 a barrel in New York on September 17, the lowest settlement since August 31. Woodside Petroleum, Australia's second-biggest oil and gas producer, slipped 0.8 per cent to $43.43.
Rio Tinto decreased 1.1 per cent to $74.73. Posco dropped 1.6 per cent to 504,000 won in Seoul. Dongkuk Steel Mill, South Korea's third-largest steelmaker, slumped 2.3 per cent to 25,150 won. James Hardie, the biggest seller of home siding in the US, sank 1.8 per cent to $5.54. LG Electronics, the world's No. 3 mobile-phone maker, fell 2 per cent to 100,500 won in Seoul.
Building survey
The Thomson Reuters/University of Michigan preliminary September index of consumer confidence fell to a one-year low of 66.6 from 68.9 a month earlier, according to data released on September 17. The gauge was projected to rise to 70, according to the median estimate in a Bloomberg News survey.
Economists in a Bloomberg News survey estimate that a National Association of Home Builders/Wells Fargo confidence index due later today will record a level of 14 for September, up from 13 last month. Readings less than 50 mean more respondents said conditions were poor.
In Sydney, David Jones declined 1.2 per cent to $5.18 after Credit Suisse analysts led by Grant Saligari downgraded the stock to “underperform” from “neutral.” Harvey Norman Holdings, Australia's largest furniture and electrical retailer, fell 1.3 per cent to $3.89.
Telstra gained 1.4 per cent to $2.79, following a 2.1 per cent drop last week. That was the biggest weekly decline since the period ended August 27.
The stock also rose after SouFun Holdings, in which Telstra owns 50.5 per cent, surged 73 per cent in New York Stock Exchange trading on September 17, making it the second-largest first-day gain for a US initial public offering this year. SouFun operates China's biggest property website.