Asia Stocks Drop as Commodity Prices Fall, Samsung Profit Misses Estimates

Asian stocks fell, with the regional benchmark index declining for the second day in three, as commodity prices dropped and Samsung Electronics Co. reported profit that missed analysts estimates.

Rio Tinto Group, the world’s third-biggest mining company, slipped 1.9 percent in Sydney as copper, gold and oil futures retreated. Samsung Electronics Co., the world’s biggest maker of televisions and flat screens, fell 0.5 percent in Seoul after posting a steeper profit decline than analysts estimated as TV prices dropped. Canon Inc., the world’s No. 1 maker of cameras that counts Europe as its biggest market, lost 0.9 percent in Tokyo after the euro weakened against the yen.

“Investors are getting concerned about overheating in the short-term,” said Juichi Wako, a senior strategist at Tokyo- based Nomura Holdings Inc. “Investors will likely be in a wait- and-see stance ahead of the jobs data.”

The MSCI Asia Pacific Index fell 0.2 percent to 137.77 as of 9:48 a.m. in Tokyo, with about an equal number of stocks declining as advancing. The measure is little changed for the week.

The Asia Pacific gauge rose to its highest level in 2 1/2 years this week as data on U.S. manufacturing and services industries boosted optimism that a recovery in the world’s largest economy is strengthening.

Australia’s S&P/ASX 200 Index declined 0.5 percent. Japan’s Nikkei 225 Stock Average slipped 0.1 percent and South Korea’s Kospi Index was little changed.

Futures on the Standard & Poor’s 500 Index were little changed today. The index slipped 0.2 percent in New York yesterday as December sales trailed estimates at some retailers, outweighing growing optimism in the jobs market. Economists expect a U.S. Labor Department report today to show employment improved in December in the world’s largest economy.

Oil, Metals, Euro

Crude oil for February delivery declined 2.1 percent to $88.38 a barrel in New York yesterday. The London Metal Exchange Index of six metals including copper and aluminum dropped 0.2 percent yesterday, falling for a second day. Gold futures for February delivery declined for the third straight day yesterday.

The euro depreciated to as low as 108.12 yen yesterday in New York, the least since Jan. 3. A weaker euro cuts the value of European income at Japanese companies when repatriated.

The MSCI Asia Pacific Index rose 14 percent last year, compared with gains of 12 percent by the S&P 500 and 8.6 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 14.2 times estimated earnings on average at yesterday’s close, compared with 13.5 times for the S&P 500 and 11.1 times for the Stoxx 600.