(03.07.2013) ASIA STOCKS lost their grounds on Wednesday

Asian stocks dropped for the first time in six days as resource companies retreated after metals prices slid overnight and an official report showed China’s services industry expanded at a slower pace.

The MSCI Asia Pacific Index lost 1.4% to 129.78  with all 10 industry groups declining. Investors are waiting on U.S. jobs figures for signs the Federal Reserve may start tapering record stimulus.

Japan’s Topix index gained 0.2% after swinging betweens gains and losses during the trading day, and the Nikkei 225 Stock Average slid 0.3%. Tokyo Electric Power dropped 10 percent to 559 yen as a gauge of utilities led declines among the Topix’s 33 industry groups.

The Japanese utility soared 19% yesterday

Hong Kong’s Hang Seng Index lost 1.7%, while the Shanghai Composite retreated 0.8%. South Korea’s Kospi index (KOSPI) fell 1.6 percent. Australia’s S&P/ASX 200 Index dropped 1.9%, and New Zealand’s NZX 50 Index slid 0.2%. Taiwan’s Taiex Index declined 1.3%. Singapore’s Straits Times Index slipped 1%.

Raw-material producers led declines on the regional equities gauge after the London Metal Exchange LMEX Index dropped 0.4% yesterday. BHP Billiton sank 3.2%. Rio Tinto Group (RIO) lost 3%. Jiangxi Copper Co. slipped 3.4%.

Suntory Beverage & Food Ltd. (2587) gained 1.5% on its debut in Tokyo after raising almost $4 billion in Asia’s largest public offering this year.

Adding to signs of a slowdown, China’s non-manufacturing purchasing manager’s index fell to 53.9 in June from 54.3 in May, according to data released by the Beijing-based National Bureau of Statistics and Federation of Logistics & Purchasing.

The conditions exist for China to realize its economic targets for this year and for sustainable, healthy development, Premier Li said in a meeting with leaders from central and eastern Europe, according to a China Central Television report yesterday.

The comments come after Goldman Sachs Group Inc., China International Capital Corp., Barclays Plc and HSBC Holdings Plc pared their growth projections this year to 7.4%, below the government’s 7.5% goal.

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