Asian stocks fell, dragging the MSCI Asia Pacific Index to its biggest drop in two weeks, after an unexpected decline in US home sales raised concern about the strength of growth in the world's largest economy.
Toyota, which receives 67 per cent of its revenue outside Japan, slid 2 per cent in Tokyo after the dollar and euro weakened against the yen. Nintendo, which counts the Americas and Europe as its biggest markets, dropped 4.4 per cent. BHP Billiton, the world's biggest mining company, lost 1.1 per cent in Sydney after oil and copper prices sank. PetroChina, the nation's biggest oil company, fell 0.5 per cent in Shanghai.
The MSCI Asia Pacific Index fell 1.1 per cent to 116.84 in Tokyo, the most since June 7. The gauge declined 0.8 per cent yesterday, snapping an eight-day advance that was the longest streak since July 2009. The measure has fallen 9.5 per cent from its high this year on April 15 on concern Chinese measures to curb property prices and Europe's debt crisis will hurt global growth.
''The outlook for the global economy is rapidly getting hazier,'' said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities. ''Investors are becoming more inclined to avoid risk.''
Japan's Nikkei 225 Stock Average fell 1.8 per cent and Australia's S&P/ASX 200 Index lost 1.4 per cent. South Korea's Kospi Index slipped 0.4 per cent. China's Shanghai Composite Index declined 0.7 per cent.
Export revenue
Futures on the Standard & Poor's 500 Index rose 0.2 per cent. The gauge dropped 1.6 per cent yesterday, the most since June 4, after the National Association of Realtors said purchases of existing houses fell 2.2 per cent in May month-on-month, compared with the 6 per cent gain estimated by economists.
Japanese exporters fell as the stronger yen threatened to reduce the value of overseas sales when repatriated. The dollar weakened to as low as 90.37 yen today from 90.81 at yesterday's close of stock trading in Tokyo. The euro depreciated to 110.82 yen from 111.61.
Toyota, the world's largest carmaker, fell 2 per cent to 3210 yen and was the biggest drag on the MSCI Asia Pacific Index. Nintendo, the world's No. 1 of portable video-game players, dropped 4.4 per cent to 27,060 yen. Sony, which receives 42 per cent of its sales from the US and Europe, declined 1.5 per cent to 2498 yen.
Gauges of technology and consumer stocks in the MSCI Asia Pacific Index dropped more than 1.5 per cent today, the most of 10 industry groups.
Materials decline
Material companies declined after crude oil for August delivery in New York dropped as much as 1 per cent today, extending yesterday's 1 per cent decline. Copper futures for September delivery lost as much as 1.6 per cent, the first decline this week.
BHP, which receives about 40 per cent of its revenue from petroleum and base metals such as copper, declined 1.1 per cent to $39.22 in Sydney. Rio Tinto Group, the world's third largest mining company, dropped 1.4 per cent to $71.14.
Mitsubishi Corp, which gets about 40 per cent of sales from commodities, slid 1.5 per cent to 1990 yen in Tokyo. PetroChina lost 0.5 per cent to 10.71 yuan in Shanghai.
''Sentiment remains very fragile,'' said David Moore, a commodity strategist at Commonwealth Bank in Sydney. ''Confidence has been rattled in recent months by European fiscal issues and by data in the US that's been uneven. They're factors that have left markets cautious.''