Asian Stocks Falls on Earnings as Japan Production Misses
Asian stocks fell, with the regional benchmark index retreating from the highest since August 2011 on the busiest day of Japan’s earnings season, after the country’s industrial production missed estimates and U.S. growth unexpectedly stalled.
Nintendo Co., the world’s largest maker of game consoles, sank 7.1 percent in Osaka after forecasting an operating loss on lower-than-expected sales of its Wii U. Whitehaven Coal Ltd. fell 4.6 percent after saying first-half earnings will drop on lower prices. China Unicom Hong Kong Ltd. gained 2.1 percent in Hong Kong after the mobile-phone carrier said 2012 profit probably rose more than 50 percent.
The MSCI Asia Pacific Index slid 0.4 percent to 132.82 as of 12:47 p.m. in Tokyo, with about five stocks falling for every three that gained. The gauge is headed for a 2.7 percent gain this month, its third monthly advance, amid a rally in Japanese shares on optimism Prime Minister Shinzo Abe’s new government will take steps to end deflation.
“Economic growth is not all smooth sailing,” said Jason Teh, who helps manage about $4 billion at Investors Mutual Ltd. in Sydney. “In the longer term it all really comes down to earnings growth.”
The MSCI Asia Pacific Index, the benchmark regional equities gauge, traded at 14.4 times average estimated earnings yesterday, compared with 13.6 for the Standard & Poor’s 500 Index (SPX) and 12.3 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
