Reply #10: Asian Stocks Drop; Hyundai Heavy, Kyushu Electric Lead Decline

[Ghost Dog]

Jan. 30 (Bloomberg) -- 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 $14 billion of writedowns related to subprime mortgages.

``The U.S. economy is slowing down and to what extent is that affecting Asia?'' said Peter Hames, who manages $30 billion at Aberdeen Asset Management Ltd. in Singapore. ``Investors hate uncertainty and hence volatility in markets.''

The MSCI Asia Pacific Index lost 1.3 percent to 141.46 at 6:12 p.m. 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 3 percent, the region's biggest decline.

Japan's Nikkei 225 Stock Average dropped 1 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.

/... http://www.bloomberg.com/apps/news?pid=20601080&sid=aRb6isiGIzUA&refer=asia