Asian Stocks: Japanese Banks Decline; Commodity Shares Advance

apanese lenders led Asian stocks lower on concern earnings will be limited by the Bank of Japan's statement that it will not raise interest rates again soon.

``As people tend to think that the next move by the BOJ is pretty far away, maybe they feel they don't have to pay much attention to these companies,'' said Masafumi Oshiden, a fund manager in Tokyo at BlackRock Japan Co., whose parent company has $1.1 trillion in assets.

Commodity stocks climbed after prices of oil and metals including gold rose. BHP Billiton, the world's largest mining company, climbed and Japan's Sumitomo Metal Mining Co. was set for its biggest jump in eight months.

The Morgan Stanley Capital International Asia-Pacific Index was little changed at 148.03 at 1:51 p.m. in Tokyo. It earlier rose as much as 0.5 percent. Japan's Nikkei 225 Stock Average was little changed at 18,184.00, while the broader Topix index lost 0.1 percent.

Mizuho Financial Group Inc., Japan's second-largest bank, slid 2.1 percent to 857,000 yen. Mitsubishi UFJ Financial Group Inc., the biggest, lost 1.3 percent to 1.50 million yen.

Central bank Governor Toshihiko Fukui said Feb. 23 interest rates will stay ``very low'' following the bank's decision to raise borrowing costs two days earlier. An increase in rates would enable lenders to charge more for loans, improving profit margins.

Melbourne-based BHP Billiton added 1 percent to A$29.23. Sumitomo Metal Mining, Japan's top gold and nickel producer, jumped 5.6 percent to 2,180 yen, set for its biggest advance since June 30. Inpex Holdings Inc., Japan's largest oil explorer, rose 3.3 percent to 1.03 million yen.

Gold Haven

A measure of six metals traded on the London Metal Exchange including copper and nickel jumped 3.3 percent on Feb. 23. Oil added 0.3 percent to its highest close since Dec. 22, and recently traded 0.5 percent higher at $61.50.

Gold in New York climbed 0.5 percent to $686.70 an ounce, the highest since May 18, as rising tension surrounding Iran's nuclear program spurred demand from investors seeking a haven. The precious metal is expected to gain this week, its eighth straight weekly advance, according to 20 of the 27 traders, investors and analysts surveyed by Bloomberg News.

Rio Tinto, the world's second-biggest mining company by market value, climbed 2.9 percent, to A$79.84. Newcrest Mining Ltd., Australia's biggest gold miner, gained 2.5 percent to A$22.61.

Nippon Steel Corp., the world's second-biggest maker of the alloy, climbed 2.1 percent to 838 yen. JFE Holdings Inc., Japan's second-largest steelmaker, advanced 1.7 percent to 7,800 yen. China Steel Corp., Taiwan's largest producer, gained 1.7 percent to NT$35.80.

``You look at where these mining shares are trading, and then take a look at the sheer demand for resources from places like China, and you have to think you can't really lose if you take a long-term view,'' said Michael Birch, who manages about $120 million in equities at Wallace Funds Management in Sydney.

source:www.bloomberg.com