Fall of Asian Stocks as U.S. credit Outlook cut; Oil price drop

April 18, 2011, 10: 49 am EDT by Anna Kitanaka

April 19 (Bloomberg)--Asian stocks fell, leading the benchmark index to its largest decline since March 15, after that Standard & Poor ratings Service cut the long-term prospects of credit U.S., fueling concern that a recovery in the global economy could slow.

Toyota Motor Corp., Builder of no. 1 in the world, fell by 2.8% in Tokyo. BHP Billiton Ltd., more important of the Australia oil producer, fell by 1.8 per cent after oil and metals prices declined. Samsung Electronics Co. lost 0.9% in Seoul after Apple Inc. filed a lawsuit alleging infringement of trade mark. Advantest Corp., the second manufacturer of semiconductor test equipment, collapsed 4.3% in Tokyo after Texas Instruments Inc. forecasts of revenue and profits which did not estimates of some analysts.The MSCI Asia Pacific Index fell 1.4 percent to 133.75 at 11: 41 am in Tokyo, with approximately eight shares for each abandonment which climbed on the gauge 1 023-member. The measure fell 0.5% last week, reversing three consecutive weeks of gains. "" If we get to a point where the United States has its debt downgraded, the deflationary effects will be felt in the world, "said based in Melbourne Tim Schroeders, of Pengana Capital Ltd., which manages approximately $ 1 billion. "A lot of credit is a price excluding U.S. denominated debt and these effects will be felt around the world."Nikkei 225 Stock average of the Japan fell by 1.5%. S & P/ASX 200 Index the Australia collapsed 1.3% and index of 50 of NZX lost New Zealand 0.7%. Index of the Korea of southern ABN slipped 1 percent.Hong Kong Hang Seng index fell 1.3% while Shanghai Stock Exchange index Composite China fell by 1.4%.U.S. FuturesFutures on Standard & Poor of 500 index fell 0.5% today. In New York yesterday, the S & P 500 lost 1.1%, the largest decline since March, after S & P lowered its Outlook on U.S. credit outlook to "negative".Toyota, which account in North America as its largest market, fell 2.8 percent to 3,135 yen, the biggest drag on the MSCI index of Asia Pacific. Canon Inc., manufacturer of camera more, sank from 1.9% to 3,550 yen. In Sydney, James Hardie Industries SE, the largest seller of siding home in the United States, decreased 2 percent to a risk of Government 5.88.The U.S. $ losing its AAA credit rating, unless decision makers to agree on a plan in 2013 to reduce budget deficits and national debtthe rating agency said. "Medium term" concerns & P has said there is a chance of one to three that the rating may be cut in two years and that its "basic assumption" is that the Congress and the administration of Obama will come to terms on a record deficit-reduction plan. " "It is clearly a concern about how the United States manages the debt in the medium term," said Schroeders.BHP decreased by 1.8% to $46.655, the second most large drag on the MSCI index of Asia Pacific. " Rio Tinto Group, society of second mining of the world by sales, fell by 2.2 per cent for a $82.15. Inpex Corp., of Japan more great oil and gas Explorer, dropped 2.2 percent to 585 000 yen.For may delivery slipped 2.3% to $107.38 per barrel in New York, close to a minimum of three days after China, second more large consuming nation in the world crude, increased Bank reserve requirements to cool inflationdemand of fuel traffic growth may slow down of crude oil. The London Metal Exchange Index six metals collapsed 1.9% yesterday, the lowest since March 16 the MSCI Asia Pacific Index lost 1.5 percent this year through yesterday, compared to earnings of 3.8%, the S & P 500 and 1 per cent by the Stoxx 600 Index of Europe. In the Asian benchmark stocks are valued at 13 times estimated in average earnings, compared to 13.4 times for the & S P 500 and 10.9 times for Stoxx 600.

-With the help of Norie Kuboyama in Tokyo. Editor: Nick Gentle.

To contact the reporter on this story: Anna Kitanaka in Tokyo, at akitanaka@bloomberg.net.

To contact the responsible editor of the story: Nick Gentle at ngentle2@bloomberg.net

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Collapse of American Stocks such as S & P cuts Outlook of the Nation's long-term credit

April 18, 2011, 4: 45 pm EDT by Rita Nazareth and Inyoung Hwang

April 18 (Bloomberg) - U.S. stocks collapsed, sending benchmark index for their biggest decline in a month, after the break of Service rating Standard & Poor nation long-term credit outlook to negative.

Caterpillar Inc. and United Technologies Corp. sank less than 2.1% to help pace the declines in the Dow Jones index. Morgan Stanley cyclical index fell 1.2% as its stocks of 30 dropped 26. Exxon Mobil Corp. and Chevron fell more than 1.4 per cent in the efforts that China cool inflation will hurt the economy of concern.S & P 500 decreased by 1.1% to 1,305.14 to 4 hours, in New York, its largest decline since March 16. The Dow average has 140.24 points, or 1.1%, to 12,201.59. "" There are many structural problems must be addressed, ", said Mike Ryan, strategist investment Chief based in New York for Wealth Management Americas at UBS Financial Services Inc., which oversees $ 741 billion. "Whenever you see anything which suggests that the rating may be subject to downgrade, it is perceived negatively." If this should increase the cost of funding for the Government, it could weigh on the economy. It is clearly not positive for business. "The & S P 500 had rallied to 4.9% this year through April 15 in the Middle higher than the estimated profits of enterprises and Government stimulus measures. Fed agencies and some United States were loaned, spent or guaranteed approximately $ 8.2 billion, to lift the economy from the worst recession since the great depression, according to data compiled by Bloomberg. "The negative & P put a"negative"outlook on the United States AAA credit rating, assigning a chance of one to three of a rating cut over the next two years, rising budget deficits and debt. "We believe, there is a significant risk that U.S. policy makers could not reach an agreement on how to address the medium - and long-term in 2013 budgetary challenges," New York-based S & P said in a report today. "" " If an agreement is not reached and useful implementation begins not at this time there, this in our opinion would make the tax profile U.S. usefully lower than that of the rulers of "aaa" peer. "The budget of fiscal year 2012 President Barack Obama, released in February, total debt subject to the CAP would 20.8 billion in 2016. The House Republican plan approved on April 15, written by the President of the Commission Budget Paul Ryan of Wisconsin, would need a ceiling of debt at least 19.5 billion dollars, according to data compiled by Bloomberg Government. "Tax Destiny'"This is another indication of the need for the United States to better control its destiny tax, both for his sake and that of the global economy,"said Mohamed El-Erian, CEO at base of Newport Beach, California Pacific Investment Management Co.largest in the world of Bond Fund Manager. "The absence of credible reform tax in the medium term, all segments of American society would be faced with higher borrowing, a weakening of the dollar and less bright prospects for employment, investment and growth."Barton Biggs, the Manager of hedge funds who have purchased stocks when the market reached in March 2009, said that he was still optimistic about equities after S & P revised its Outlook for credit on the United States. "I changed my net long? Not really, "Biggs, who heads based in New York Traxis Partners LP, said in an interview today with Bloomberg Television"Street Smart"with Carol Massar and Matt Miller." "Am I more concerned that I was Friday?" Yeah, I guess I am. "U.S. index fell after the S & P made his announcement, which" immediately sends a warning to the politicians that it will be terrible consequences, unless they bring their acts. " We have a system of Government which is painful but in the long term do good things. "SlumpIndustrial companies industrial companies in the S & P 500 dropped 1.3% a. Caterpillar, large more than material construction manufacturer, fell by 3.1% to $103.90. United Technologies slid $2.1% 81.70.Energy producers in the S & P 500 has dropped by 1.5%, the largest decline in 10 industries. Exxon collapsed 1.4 percent to $83.10 and Chevron decreased by 1.6% to peices $. Oil fell for the first time in four days in New York after Saudi Arabia, the largest exporter in the world, said that the global market has an adequate crude supply.Gap Inc. collapsed 3 percent to $21.79 after Goldman Sachs reduced its rating on the stock to "sell" from "neutral" and said that he sees long-term declines in the comparable store sales. Bank of America Corp. has also reduced its recommendation, cutting the shares to "neutral" from "buy."ChinaThe MSCI all country World Index of shares in 45 countries dropped 1.6% and the Thomson Reuters/index CRB for raw materials fell 0.9%. China increased the requirements of banks to block cash reserve and cool inflation and Central Bank Governor Zhou Xiaochuan, said monetary tightening will continue "any time."Reserve ratios will rise by half a point on 21 April, the Bank of China said on its Web site pushing the requirement of a percentage of 20.5 record for the largest lenders yesterday. The move came less than two weeks after an interest rate increase. Zhou sees no "absolute" limit on how high reserve requirements cannot go, he said, April 16 Community Health Systems Inc. collapsed 4.4% of $30.50. The operator of the hospital said that it provides now $6 cash for Tenet Healthcare Corp.. His previous offer was $ 5 cash cash and $1 in stock. Tenet declined 2.6% to $6.49.U.S. stocks may fall as the & S P 500 gathers momentum downward, by dragging the gauge to the next level of support from about 1275, according to the Credit Switzerland Group AG. The moving average convergence/divergence or MACD, indicator - a measurement used to identify the changes made to the dynamics of stock or direction - has fallen since April 7, when the & S P 500 has reached 1,333.51. ? Swale medium-term momentum requires us to remain sceptical lower possible rupture, "David Sneddon, head of technical analysis of the Credit Switzerland London-based wrote in a report to investors today."

-With the help of Shannon d. Harrington in New York and Adam Haigh in London. Editors: Joanna Ossinger, Michael Regan

To contact the reporters on this story: Rita Nazareth to Sao Paulo to the rnazareth@bloomberg.net; Hwang inyoung in New York to the ihwang7@bloomberg.net

To contact the editor responsible for this story: Michael Regan at mregan12@bloomberg.net

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