Asian stocks dropped on concern Greece’s debt crisis may worsen and after President Barack Obama said failure to raise the U.S. debt ceiling by early August might disrupt the global financial system.
BHP Billiton Ltd. (BHP), the world’s largest mining company, fell 1.9 percent in Sydney after gold and metal prices dropped. Rio Tinto Group, the second-biggest by sales, sank 1.5 percent.Toyota Motor Corp. (7203), the world’s No. 1 carmaker, slid 1.5 percent in Tokyo, whileMitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded bank, lost 0.3 percent.
“Investors are getting more sensitive about taking risks on concern about the future of Greek debt issues,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc. “They may continue putting money in safe bonds or cash, rather than stocks.”
The MSCI Asia Pacific Index declined 0.7 percent to 135.17 as of 9:35 a.m. in Tokyo. About five stocks fell for each that rose on the gauge, which recorded its second straight weekly decline last week amid concern China’s anti-inflation policies may crimp global growth.
Japan’s Nikkei 225 (NKY) Stock Average sank 0.6 percent, while South Korea’s Kospi Index lost 0.4 percent. Australia’s S&P/ASX 200 Index slid 1.4 percent. www.bloomberg.com