Asian Stocks Decline as China Mulls Production Curbs; Rio Falls

Asian stocks declined, led by commodity companies, after China’s government said it may curb overcapacity in the steel and cement industries, as well as strengthen controls of stock and bond sales.

Rio Tinto Group, which got 19 percent of its sales in China last year, sank 2.6 percent in Sydney. Mitsubishi Corp., a Japanese trading company that gets more than a third of its revenue from commodities, retreated 2.5 percent. China Vanke Co., the nation’s biggest publicly traded property developer, sank 2.7 percent in Shenzhen on share-sale plans.

The MSCI Asia Pacific Index lost 0.6 percent to 112.84 as of 10:47 a.m. in Tokyo. The gauge has climbed 60 percent from a more than five-year low on March 9 on speculation government stimulus packages and lower borrowing costs will revive the global economy.

“There’s been a few stories about Chinese authorities trying to pull back on some of the stimulus,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State, which holds about $114 billion. “In the short term, it takes some of the froth off the big rally we’ve had in the market.”

Japan’s Nikkei 225 Stock Average dropped 1.4 percent to 10,493.35. Australia’s S&P/ASX 200 Index declined 0.2 percent. South Korea’s Kospi Index fell 0.5 percent.

Studying Curbs

Futures on the Standard & Poor’s 500 Index lost 0.3 percent. The gauge was little changed yesterday as a smaller-than- estimated rise in orders for some durable goods and possible curbs on raw-materials suppliers in China outweighed a surge in new-home sales.

The Chinese government said yesterday it’s studying curbs on overcapacity in industries including steel and cement. It will also increase “guidance” over parts of the coal, glass and power industries, the State Council said on its Web site. Controls on stock and bond sales by companies in targeted sectors will be strengthened, it said.