(1888PressRelease)
April 29, 2009 - National Australia Bank Ltd., the country’s biggest by assets, slumped 3 percent, while Ping An Insurance (Group) Co., China’s second-largest insurer, sank 9 percent as they reported lower earnings. JFE Holdings Ltd., Japan’s No. 2 steelmaker, fell 5.4 percent after U.S. Steel Corp. reported a larger-than- estimated loss. Chugai Pharmaceutical Co., which sells the antiviral drug Tamiflu, rose for a second day in Tokyo on speculation a swine flu outbreak will boost drug sales.
The MSCI Asia Pacific Index lost 1.5 percent to 87.85 at 1:55 p.m. in Tokyo, accelerating declines after the Journal’s report on Bank of America and Citigroup. The measure has rallied 25 percent from a more than five-year low on March 9 amid speculation the worst of the credit crisis had passed.
“You’d think that most banks could pass the stress tests, but if even these two fail, what it tells investors is that the situation could get much worse,” said Stephen Yang, a Singapore based analyst with Seedorf Luxman & Partners, which oversees $500 million. Leung said he’s cautious on financial shares.
Japan’s Nikkei 225 Stock Average lost 1.8 percent to 8,567.27, while Hong Kong’s Hang Seng Index sank 1.4 percent. Most markets in Asia fell except New Zealand, Indonesia, Vietnam and Sri Lanka.
Futures on the Standard & Poor’s 500 Index lost 1.5 percent. The gauge dropped 1 percent in New York yesterday as concern the swine flu outbreak will hurt travel, energy and hotel companies overshadowed gains in healthcare stocks.
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