Asian Stocks Decline as Japanese Exporters Drop on Yen

Asian stocks retreated, with the regional benchmark index heading for its first monthly decline in seven months, as commodities fell and the yen traded near a three-week high.

Honda Motor Co. (7267), which gets 46 percent of sales from North America, slid 2.2 percent, on concern a stronger yen will damp the earnings outlook among Japanese exporters. BHP Billiton Ltd. (BHP), the world’s biggest mining company and Australia’s top oil producer, lost 1.3 percent after crude oil and copper futures dropped. National Australia Bank Ltd., the nation’s fourth-biggest lender, fell 0.3 percent, heading for an eighth day of decline, its longest losing streak since November 2010.

The MSCI Asia Pacific Index decreased 0.9 percent to 136.77 as of 10:19 a.m. in Tokyo, with all 10 industry groups falling on the gauge, which is poised to close at the lowest level since April 19. The measure is heading for a 3.8 percent decline this month as speculation grows that the Federal Reserve will reduce its bond purchases as the U.S. economy improves and amid signs of an economic slowdown in China.

“It’s difficult for the market to keep rallying,” said Angus Gluskie, managing director at White Funds Management in Sydney, who manages more than $400 million. “Apart from volatility caused by the currency and bonds, we are at a juncture where further moves from Japanese equities need to be fundamentally driven.”

Japan’s Topix fell 1.5 percent. The Nikkei 225 Stock Average sank 2 percent, poised for its lowest close since May 2. The yen climbed as much as 0.6 percent to 100.59 against the dollar, a level last seen on May 10, before trading at 101.32 as of 10:05 a.m. in Tokyo. A stronger yen cuts the value of overseas earnings at Japanese companies when repatriated.

(Source: Bloomberg)