Asian stocks dropped for a second day after a Chinese central bank adviser forecast an economic slowdown and on renewed concern that Greece may not meet its bailout targets, damping demand for riskier assets.

Machinery maker Komatsu Ltd. (6301), which generates 24 percent of its revenue in China and Europe, dropped 2.2 percent in Tokyo. BHP Billiton Ltd. (BHP), the world’s largest mining company, lost 2.8 percent in Sydney as lower oil and metal prices weighed on growth-sensitive companies. JFE Holdings Inc. fell 2.3 percent in Tokyo, pacing declines among steel companies on a report its quarterly profit fell.

The MSCI Asia Pacific Index lost 1.1 percent to 115.41 as of 10:09 a.m. in Tokyo before markets in Hong Kong and China opened. Almost eight stocks dropped for each that gained on the measure, which rose 1.2 percent last week.

“There are many global macro headwinds,” said George Boubouras, Melbourne-based head of investment strategy at UBS AG’s Australian unit. The Swiss bank has about $1.5 trillion in assets under management. “Risk aversion persists for many investors. Cautious corporate guidance remains, given the many different macro and political challenges.”

The MSCI Asia-Pacific Index fell 9.5 percent from this year’s high on Feb. 29 through last week amid concern China’s economy will slow and Europe’s sovereign debt crisis will worsen. The regional benchmark trades at 11.8 times estimated earnings, compared with a multiple of 13.2 for the S&P 500 Index and 10.8 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Nikkei, Kospi

Japan’s Nikkei 225 Stock Average declined 1.3 percent. South Korea’s Kospi Index (KOSPI) slid 2.1 percent. Australia’s S&P/ASX 200 Index (AS51) lost 1.3 percent.

Futures on the Standard & Poor’s 500 Index (SPXL1) fell 0.4 percent today. The index dropped 1 percent in New York on July 20, the biggest loss since June 25.

Companies that do business in China fell after Song Guoqing, an academic member of the People’s Bank of China monetary policy committee, predicted the nation’s expansion may cool to 7.4 percent this quarter. The adviser to the central bank also warned that a decline in producer prices in tandem with consumer inflation may hurt investment returns of industrial companies.

In Europe, Greece is back at the heart of the region’s debt crisis as policy makers arrive in Athens tomorrow amid doubts the country will meet its commitments and reluctance among euro- area states to issue more funds should it fail.
’Very Skeptical’

“If Greece doesn’t fulfill those conditions, then there can be no more payments,” German Vice Chancellor Philipp Roesler told broadcaster ARD, adding that he is “very skeptical” Greece can be rescued and that the prospect of its exit from the monetary union “has long ago lost its terror.”

For more visit: Bloomberg.com

Similar Posts:

• Asian Stocks Drop as Euro Approaches Two-Year Low
• Asia Stocks Drop, Euro Weakens Before Meeting
• World stocks hit by signs of slowdown in China, US
• Stocks, Euro Rise Amid Greece Optimism
• Wall Street, Euro Tumble on Greece Debt Concern