Asian Stocks Fall on China Rate Concern; Japan Banks Rally
Most Asian stocks fell as concern mounted that China’s interest rate increase won’t be enough to slow inflation, overshadowing gains by Japanese banks after Mizuho Financial Group Inc. said it won’t need more capital.
In Hong Kong, China Resources Land Ltd., a state-controlled developer, dropped 1.7 percent as the market resumed trade following a three-day break for Christmas. Belle International Holdings Ltd., China’s largest retailer of women’s shoes, fell 3.8 percent. Mizuho, Japan’s third-biggest bank by market value, gained 1.3 percent after the lender said it won’t need to sell more shares in order to meet Basel Committee on Banking Supervision capital requirements.
“The global economy is recovering, but as a backdrop there’s the China overheating concern because it’s still unable to be controlled,” said Danny Yan, a Hong Kong-based fund manager at Haitong International Asset Management, which oversees about $400 million. “I don’t think the banking sector has a big downside. People are looking towards their profitability now.”
The MSCI Asia Pacific Index climbed 0.3 percent to 135.9 as of 7:25 p.m. in Tokyo as gains by Japanese banks outweighed declines by developers and energy companies in Shanghai and Hong Kong. About four stocks fell for every three that gained on the 1,018 member gauge. The index is set for its highest close since July 24, 2008.
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