Bloomberg News

Asian Stocks Drop Amid Europe Deadlock; Honda Motor Advances

June 15, 2011

June 15 (Bloomberg) -- Asian stocks fell, sending the region’s benchmark index lower for the fifth day in six as European Union officials struggled to break a deadlock on a second Greek rescue plan and China ordered lenders to set aside more cash as reserves.

Esprit Holdings Ltd., a global fashion retailer that gets most its revenue from Europe, slumped 3.4 percent in Hong Kong. BHP Billiton Ltd., the world’s No. 1 mining company, sank 0.6 percent in Sydney. Rio Tinto Group, the world’s second-largest mining company by sales, lost 0.4 percent as oil and metal prices dropped. Honda Motor Co., a carmaker that gets about 84 percent of sales outside Japan, climbed 2 percent after a report showed U.S. retail sales were better than forecast.

The MSCI Asia Pacific Index fell 0.2 percent to 132.61 as of 1 p.m. in Tokyo. About five stocks declined for each four that advanced on the gauge.

“A lack of resolution of Greece’s debt situation adds to investor uncertainty not only for Greece, but other highly indebted nations within the European Union,” said Tim Schroeders, who helps manage about $1 billion in global equities at Pengana Capital Ltd. in Melbourne. “China increasing its reserve requirement ratio is a concern. Authorities as yet have not been able to attain equilibrium.”

----With assistance from Norie Kuboyama and Satoshi Kawano in Tokyo. Editor: Jason Clenfield, Nick Gentle.

To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.


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