Asian Stocks Drop on Worsening Radiation Crisis at Japan Nuclear Reactor

Asian stocks fell, leading a regional benchmark index lower for the third time this week, on renewed concern that a worsening nuclear crisis in Japan may cripple the world’s third-largest economy.

Sony Corp., an electronics maker, sank 3.9 percent in Tokyo after a U.S. official said all water has drained from a spent- fuel pool at a Japanese nuclear plant, raising the risk from radiation. Honda Motor Co., Japan’s second-largest carmaker by sales, slumped 2.8 percent as the yen reached a post-World War II high against the dollar. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, slipped 0.4 percent in Sydney on concern demand for raw materials will decrease.

“Far more investors are looking to protect their assets by reducing risk, instead of looking to make profits,” said Mitsushige Akino, who oversees about $450 million in Tokyo at Ichiyoshi Investment Management Co. “We don’t know what will happen to the nuclear plants and the government’s pronouncements are losing credibility.”

The MSCI Asia Pacific Index fell 1.1 percent to 127.52 as of 9:27 a.m. in Tokyo. Almost 12 times as many stocks declined as advanced, and all of the 10 industry groups on the gauge fell. The index yesterday rose 3.2 percent on speculation sell-offs since Japan’s worst earthquake on March 11 had been excessive.

Japan’s Nikkei 225 (NKY) Stock Average sank 4.1 percent today. Australia’s S&P/ASX 200 Index retreated 0.5 percent and South Korea’s Kospi Index fell 1.1 percent. (Bloomerg)