STOCKS weekly review (17.06 – 21.06.2013) ASIA

Asian stocks outside Japan fell last week, with the regional benchmark index slumping to its longest losing streak in two years, amid concern that U.S. stimulus is nearing an end and that a cash crunch in China is worsening.

The MSCI Asia Pacific excluding Japan Index fell 4.5% to 420.30 last week, the biggest drop since May last year. The MSCI Asia Pacific Index, which includes Japanese shares, plunged 4.1% on June 20, the most since March 15, 2011, after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank may cut stimulus this year.

The Nikkei 225 Stock Average gained 4.28% for the week. Hong Kong’s Hang Seng Index declined 3.4%, extending its run of weekly losses to six, the longest streak since the global financial crisis of 2008. China’s Shanghai Composite Index dropped 4.1%.

A preliminary reading of China’s manufacturing released June 20 by HSBC Holdings Plc and Markit Economics showed contraction in the sector is accelerating more than expected.

South Korea’s Kospi Index lost 3.5%. Australia’s S&P/ASX 200 Index retreated 1.1%. Singapore’s Straits Times Index slipped 1.2%. Taiwan’s Taiex Index dropped 1.8%.

The yen’s drop brightened the outlook for exporters. Toyota Motor Corp., the world’s biggest carmaker, added 4.5%. Honda Motor Co. added 3.9%.

Exporters outside Japan dropped. Samsung, the world’s biggest maker of smartphones and the second-heaviest weighted stock on the Asia-Pacific measure, lost 3.2%. Li & Fung Ltd., a supplier of toys and clothes to Wal-Mart Stores Inc., declined 5.2%. Techtronic Industries Co., a maker of power tools that gets 73% of its sales in North America, dropped 2%.

Chinese lenders plunged. Agricultural Bank of China dropped 8.6% in Hong Kong, Bank of Communications Co. slid 5.4%, Industrial & Commercial Bank of China Ltd. slumped 8.9%.

Galaxy Entertainment Group Ltd. dropped 5.9% in Hong Kong. JPMorgan Chase & Co. cut its rating to neutral from overweight on the Macau casino operator founded by billionaire Lui Che Woo.

Nomura Real Estate Office Fund Inc. slumped 16% after saying on June 14 it plans to raise 35 billion yen ($358 million) to acquire property and repay debt.

Among stocks that rose, China Mengniu Dairy Co., the country’s largest dairy producer, gained 2.4% in Hong Kong. The company offered HK $12.5 billion ($1.6 billion) to buy baby-food maker Yashili International Holdings Ltd. amid surging mainland demand for infant formula.

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