Asian stocks dropped from 16-year highs this week,
led by BHP Billiton and PetroChina Co., after China's central bank unexpectedly
raised its key lending rate to cool economic growth and crude oil tumbled.
Toyota Motor Corp. and Samsung Electronics Co. led declines by exporters on
concern the value of their overseas sales will slide after the yen and won
strengthened against the dollar.
The Morgan Stanley Capital International Asia-Pacific Index, a dollar-based
index that tracks shares in 14 markets across the region, lost 0.1 percent to
137.03 last week. A measure of energy stocks including PetroChina dropped 3.6
percent as crude oil prices fell from a record.
Japan's Nikkei 225 Stock Average slumped 2.9 percent, its worst performance
in 11 weeks. South Korea's Kospi index dropped 2.2 percent, while Hong Kong's
Hang Seng Index fell 1.5 percent.
BHP Billiton, the world's largest mining company, lost 2.7 percent this week.
PetroChina, China's biggest oil producer, slumped 6.6 percent.
China's central bank increased banking lending rates by 0.27 percentage point
on Friday to 5.85 percent and asked the nation's banks to restrict lending to
prevent the economy from overheating.
Shares of mining companies and commodity producers dropped on speculation
increased borrowing costs will curb demand for raw materials in the world's
fastest growing major economy. China is the world's biggest consumer of copper,
steel and zinc.
``Companies that rely on the Chinese market may suffer if China continues
raising rates,'' said Tsuyoshi Shimizu, who helps oversee $16 billion at
Dai-Ichi Kangyo Asset Management Co. in Tokyo.
Rio Tinto Group, the world's third-biggest miner, fell 2.7 percent and CNOOC
Ltd., China's biggest offshore oil producer, slumped 6.7 percent.
Oil futures tumbled 4.4 percent this week to $71.88, since touching a record
$75.35 a barrel on April 24 in New York. Copper, which has doubled in the past
year, fell 4.3 percent from a record this week, while zinc tumbled 4.1, its
biggest weekly decline since February. Aluminum lost 0.8 percent.
Toyota, Japan's biggest automaker, lost 3.5 percent this week and Samsung
Electronics, South Korea's biggest exporter, fell 6.7 percent.
(For more biz stories, please visit Industry Updates)
