Asian Stocks Decline on China Real-Estate Concern; CSL Declines

By Jonathan Burgos Bloomberg

April 27 (Bloomberg) -- Asian stocks declined, dragging the MSCI Asia Pacific Index lower for the third time in four days, as concern deepened that China’s steps to cool its property market will curb growth in the world’s third-largest economy.

Industrial & Commercial Bank of China Ltd. sank 2.2 percent in Shanghai on concern lending will slow. PetroChina Co., China’s largest oil producer, lost 1.9 percent on lower oil prices. CSL Ltd., the world’s No. 2 maker of treatments made from blood, slipped 3.7 percent in Sydney after Credit Suisse Group AG downgraded the stock. Elpida Memory Inc. dropped 2.2 percent in Tokyo as memory-chip prices declined.

The MSCI Asia Pacific Index lost 0.2 percent to 127.04 as of 2:17 p.m. in Tokyo, with almost two stocks falling for each one that rose. The gauge has climbed 11 percent from its low this year on Feb. 8 as better-than-estimated economic and earnings reports offset concerns Greece will default on its debt. German Chancellor Angela Merkel said yesterday a Greek bailout isn’t a done deal.

“Concerns about potential delays in financial aid for Greece as well as further monetary tightening in China continue to dampen investor sentiment,’ said Michiya Tomita, a Hong Kong- based fund manager for Mitsubishi UFJ Management Co., which holds $65 billion in assets. “Valuations are still expensive. We need to see more earnings improvement

China’s Shanghai Composite Index slumped 2.3 percent. Hong Kong’s Hang Seng Index dropped 1 percent. South Korea’s Kospi Index lost 0.3 percent. Japan’s Nikkei 225 Stock Average rose 0.2 percent, led by Fanuc Ltd., which climbed 6.8 percent after reporting earnings