BHP Billiton Ltd., the world’s largest mining company and Australia’s No. 1 oil producer, sank 1.7 percent. Woodside Petroleum Ltd., the nation’s second-biggest oil and gas producer, lost 1.6 percent in Sydney. Mitsubishi Corp., Japan’s largest commodities trader, dropped 0.5 percent in Tokyo. Asustek Computer Inc. jumped 5.9 percent in Taipei after Nomura Holdings Inc. named the company as one of its top picks among Asian technology stocks.
The MSCI Asia Pacific Index was little changed at 135.78 as of 12:34 p.m. in Tokyo. About five stocks rose for every four that fell.
“America still provides growth leadership and is the missing piece in the recovery story in many ways,” said James Holt, Sydney-based director of BlackRock Investment Management (Australia) Ltd., which oversees about $40 billion. “The default position is that a deal on the debt ceiling will be struck, but markets are getting jittery about the lack of progress. You either have a deal or you have a default, and one is hugely positive while the other is hugely negative.”
S&P said there was at least a 50 percent chance it will lower the U.S. AAA rating within 90 days, citing the risk of a stalemate enduring beyond any near-term agreement to raise the nation’s debt ceiling. Moody’s Investors Service put the U.S. credit rating on review July 13 for a downgrade. The U.S. has held the top rating since 1917.
Nikkei, Kospi
Japan’s Nikkei 225 Stock Average rose 0.2 percent. South Korea’s Kospi Index gained 0.4 percent. Australia’s S&P/ASX 200 Index fell 0.3 percent. Hong Kong’s Hang Seng Index dropped 0.3 percent, led by developers after China said it’s seeking to limit residential property prices in smaller cities.
Futures on the Standard & Poor’s 500 Index climbed 0.1 percent today. In New York, the index slipped 0.7 percent yesterday to the lowest level this month as a stalemate continued in Washington on negotiations over the U.S. debt ceiling.
Fed Chairman Ben S. Bernanke, testifying for a second day before the Senate Banking Committee, told lawmakers yesterday: “We’re not prepared at this point to take further action.” A day earlier, he had said he was prepared to provide more stimulus if needed.
Oil, Metals
BHP sank 1.7 percent to A$42.84 in Sydney. Woodside fell 1.6 percent to A$39.39. Jiangxi Copper Co., China’s biggest producer of the metal by market value, slid 1.1 percent to HK$27.20 in Hong Kong. Mitsubishi Corp. dropped 0.5 percent to 2,049 yen in Tokyo. Inpex Corp., Japan’s largest energy exploration company, lost 1.7 percent.
Crude oil for August delivery dropped 2.4 percent to settle at $95.69 a barrel in New York yesterday. The London Metal Exchange Index of prices for six industrial metals including copper and aluminum fell 1.8 percent.
Developers fell in Hong Kong after a summary of a State Council meeting chaired by Premier Wen Jiabao showed China will expand efforts to curb the growth in residential prices to smaller cities after limiting home purchases in Beijing and Shanghai.
China Overseas Land & Investment Ltd., controlled by the nation’s construction ministry, sank 4.1 percent to HK$16.20, while China Resources Land Ltd., another state-controlled developer, dropped 2.8 percent to HK$14.70.
Technology Stocks
The MSCI Asia Pacific Index lost 1.5 percent this year through yesterday, compared with a gain of 4.1 percent by the S&P 500 and a drop of 2.9 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 13.5 times estimated earnings on average, compared with 13.2 times for the S&P 500 and 10.7 times for the Stoxx 600.
Asustek climbed 5.8 percent to NT$282.50 in Taipei, leading technology stocks higher. Nomura said the company will likely be able to exceed its shipment target with a new tablet computer model, according to a report yesterday.
Other technology stocks rose after Google Inc., owner of the world’s largest Internet-search engine, reported sales and profit that topped analysts’ estimates.
Electronics Retailers
MediaTek Inc., Taiwan’s largest chip designer, climbed 3.7 percent to NT$267.50.
Japanese electronics retailers advanced on speculation the government will promote the use of “eco-point’ energy-efficient devices. The Nikkei newspaper reported that Japan may revive a program designed to promote sales of energy-efficient appliances to help cut power usage.
Yamada Denki Co. surged 3.4 percent to 6,950 yen. Kojima Co. climbed 2.7 percent to 578 yen.
Also in Tokyo, Hitachi Ltd., a maker of products from electronics to nuclear reactors, rose 2.1 percent to 485 yen. The company said it’s been named strategic investor for the Visaginas Nuclear Power Plant Project planned by Lithuania.
Mitsubishi Chemical Holdings Corp., a chemicals maker, gained 1.5 percent to 600 yen after the Nikkei newspaper said the company may report higher profit than previously forecast.
--With assistance from Akiko Ikeda and Satoshi Kawano in Tokyo. Editors: John McCluskey.To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
