Asian Stocks Decline for First Time in Four Days on Yen Gain, Metal Prices

Asian stocks declined, driving the benchmark index to its first drop in four days, as lower metal prices dragged down mining companies and the dollar slid against the yen, damping the earnings outlook for Japanese exporters.

BHP Billiton Ltd., the world’s biggest mining company, fell 0.7 percent in Sydney. Nissan Motor Co., a Japanese carmaker that earns about 75 percent of its sales overseas, lost 0.6 percent in Tokyo. Advantest Corp., the world’s biggest maker of chip-testing equipment, dropped 2.3 percent in Tokyo after revising a takeover offer.

“The stronger yen will likely lead investors to sell shares to lock in profits,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc.

The MSCI Asia Pacific Index fell 0.3 percent to 135.17 as of 9:27 a.m. in Tokyo, with two stocks declining for each that advanced. The gauge is headed for a 1.2 percent gain this week as reports showed U.S. gross domestic product expanded faster than estimated and the country’s retail sales increased last week, bolstering confidence in a global economic recovery.

Japan’s Nikkei 225 Stock Average declined 0.7 percent after being closed yesterday for a holiday. Australia’s S&P/ASX 200 Index decreased 0.3 percent. New Zealand’s NZX 50 Index and South Korea’s Kospi Index were little changed.

Futures on the Standard & Poor’s 500 Index were little changed. The index fell 0.2 percent yesterday in New York, after a five-day rally.

Metals, Currency

The MSCI Asia Pacific Index increased 13 percent this year through yesterday, compared with gains of 13 percent by the S&P 500 and 11 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 14.9 times estimated earnings on average at yesterday’s close, versus 14.7 times for the S&P 500 and 12.5 times for the Stoxx 600.

Copper futures for March delivery fell 0.4 percent yesterday in New York. The London Metal Exchange Index of six metals including copper and aluminum, slipped 0.8 percent yesterday, dropping for a second consecutive day.

The dollar depreciated to as low as 82.86 against the yen yesterday in New York, the weakest level since Dec. 14. The euro slid to 108.46 against the Japanese currency yesterday, near the lowest level this month. That cuts the value of overseas income at Japanese companies when converted into their home currency.