Asian Stocks Slump as Aiful Seeks Suspension of Debt Payments

Asian stocks fell, dragging the MSCI Asia Pacific Index from a one-year high, as Aiful Corp. sought to reschedule its debt payments and metal prices declined.

Aiful Corp., Japan’s third-largest consumer lender by revenue, had yet to trade though was bid lower by 27 percent. Rival Promise Co. dropped 12 percent. BHP Billiton Ltd., the world’s largest mining company, slipped 1.4 percent, following declines by copper and gold yesterday in New York.

The MSCI Asia Pacific slipped 0.8 percent to 117.89 as of 10:36 a.m. in Tokyo, falling from its highest close since Sept. 8, 2008. The index climbed 67 percent from a five-year low on March 9 through yesterday as stimulus measures around the world pulled economies out of recession. Stocks in the gauge traded at 1.6 times book value, the highest since September 2008.

“Uncertainties are clouding the outlook for Japanese financial companies and investors are shunning them,” said Juichi Wako, a senior strategist at Tokyo-based Nomura Holdings Inc. “People want to take profit before a five-day holiday” that begins tomorrow in Japan.

The Nikkei 225 Stock Average dropped 1.2 percent in Japan, where stock markets resume trading on Sept. 24. Australia’s S&P/ASX 200 Index fell 0.8 percent.

Futures on the U.S. Standard & Poor’s 500 Index retreated 0.5 percent. The benchmark fell 0.3 percent yesterday as companies including FedEx Corp. and Oracle Corp. reported sales that missed analysts’ estimates.

Aiful’s Plan

Aiful was poised to drop 27 percent to 134 yen, with sell orders outnumbering those to buy. The company said it will try to reschedule debt payments after the financial crisis hurt its ability to raise money.

Promise retreated 12 percent to 533 yen. Takefuji Corp. slumped 11 percent to 412 yen. Sumitomo Mitsui Financial Group Inc., which holds a stake in Promise, declined 2.7 percent to 3,270 yen.

On Sept. 14, Standard & Poor’s said it put Aiful and rival Takefuji on credit watch for possible downgrade.

BHP retreated 1.8 percent to A$38.89 Rio Tinto Group, the world’s third-largest mining company, fell 1.4 percent to A$60.53. Copper futures fell 1.4 percent in New York yesterday as stockpiles tallied by the London Metal Exchange swelled for a 15th day. Gold lost 0.7 percent.

The MSCI Asia Pacific Index’s six-month rally has been driven by better-than-estimated economic reports and corporate earnings. Of 647 companies on the gauge that have reported net income for the latest quarter, 225 beat analyst predictions, while 138 missed.