ASIAN stocks fell, led by South Korean shipbuilders and Japanese power producers, on concern slowing global growth and rising fuel costs will erode earnings.
Hyundai Heavy Industries Co and Samsung Heavy Industries Co plunged after Macquarie Group Ltd recommended selling shares in the world's two largest shipyards. Kyushu Electric Power Co tumbled the most in more than six years after cutting its profit forecast. HSBC Holdings Plc and Bank of China Ltd retreated after UBS AG reported a record loss on about US$14 billion of writedowns related to the United States subprime mortgages, Bloomberg News said.
"The US economy is slowing down and to what extent is that affecting Asia?" said Peter Hames, who manages US$30 billion at Aberdeen Asset Management Ltd in Singapore. "Investors hate uncertainty and hence volatility in markets."
The MSCI Asia Pacific Index lost 1.4 percent to 141.33 at 7:04pm in Tokyo, reversing an earlier gain of 0.8 percent. The benchmark is set for its worst month since September 2001. South Korea's Kospi Index fell three percent, the region's biggest decline.
Japan's Nikkei 225 Stock Average dropped one percent to 13,345.03. Hong Kong's Hang Seng Index slumped 2.6 percent. All other Asian benchmarks retreated apart from the Philippines, Thailand and Vietnam. Indonesia was little changed.
Samsung Electronics Co and Hynix Semiconductor Inc gained after UBS AG raised its targets. Shipping companies advanced after Credit Suisse Group boosted its stock rating on Nippon Yusen KK.
Hyundai Heavy plunged 10 percent to 286,000 won (US$301), the most since September 12, 2001. Samsung Heavy slumped 10 percent to 25,400 won, its lowest level since April 5.
Macquarie cut ratings on South Korea's shipyards to "underperform" from "outperform" and reduced share-price estimates by as much as 70 percent.
Kyushu Electric, Japan's fourth-largest power producer, slumped 5.5 percent to 2,650 yen (US$24.86), its biggest drop since November 2001, after slashing its net income outlook by 23 percent on rising fuel costs. Tokyo Electric Power Co fell 1.4 percent to 2,770 yen, after Asia's biggest utility said it expects a wider annual loss.