Can cool inflation Save Asian Stocks From Continious in falling ,

Asian stocks fell for a third day on speculation that the governments of the region will take further measures to cool inflation. Japanese exporters rose after a report showed that U.S. retail sales grew more than estimated and the yen weakened against the dollar.

Jiangxi Copper Co. slipped 8.7 percent in Shanghai on speculation China will intensify adjustment measures call. Hyundai Engineering & Construction Co. fell 15 percent in Seoul and the Bank of Korea raised its benchmark interest rate. James Hardie Industries fell 2 percent in Sydney after being downgraded to "underperform" by Credit Suisse Group AG. Mazda Motor Corp., with 24 percent of North American sales, rose 2.8 percent in Tokyo.

The MSCI Asia Pacific Index dropped 0.7 percent to 130.78 as of 19:51 in Tokyo, with more than two stocks falling for each that rose. The Shanghai Composite Index fell 4 percent on speculation measures to curb inflation as price controls and higher interest rates may affect earnings.

"We are reaching the point where the measures being taken by developing countries to put a damper on growth," said Matt Riordan, who helps manage about 6.6 billion in Paradice Investment Management in Sydney. "Stock market performance this year has been a priority for companies exposed to the issue of developing economies, so when it is taken to apply the brakes, we're seeing some profit taking beginning to come"

The indicator for Asia and the Pacific before losing as much as 0.5 percent and gained as much as 0.2 percent.

China Loans

Reports that some Chinese banks stopped lending fueled speculation yesterday that the country further act to cool the economy, boosting Asia-Pacific 0.4 per cent lower caliber.

Future over 500 of Standard & Poor's dropped 0.6 percent today. In New York, the index fell 0.1 percent yesterday as a growing criticism of Federal Reserve's plan to stimulate growth and concern that a swelling federal deficit will lead to higher borrowing costs yields was superior. The yield on the benchmark 30-year Treasury rose to 4.41 percent, the highest intraday level since May.

The U.S. retail sales rose 1.2 percent in October, the biggest gain in seven months, according to Commerce Department data released yesterday in Washington. That exceeded the highest forecast among economists surveyed by us.

Japan's Nikkei 225 Stock Average fell 0.3 percent and Australia's S & P / ASX 200 gained 0.3 percent, while New Zealand NZ 50 index declined 0.4 percent in Wellington. Hong Kong Hang Seng index sank 1.4 percent.

Materials demand

Jiangxi Copper fell 8.7 percent to 36.32 yuan in Shanghai and Hong Kong 2.5 percent to $ 23.85 in Hong Kong. Yanzhou Coal Mining Co. fell 9.2 percent to 26.28 yuan tightened further speculation to reduce demand for raw materials. China Construction Bank Corp. fell 5.3 percent to 4.83 yuan at the prospect of higher borrowing costs to curb credit growth.

"The speculation that the central bank tightens monetary policy continues to dog the market," said Wang Cheng, a strategist at Guotai Junan Securities Co. in Shanghai. "The market is under pressure over the next three to 12 months from the threat of measures to cool inflation."

South Korea's Kospi index fell 0.8 percent as the Bank of Korea in Seoul, said today that it raised the benchmark interest rate by 0.25 percentage points to 2.5 percent. Six of 13 economists surveyed by us .predicted the decision, while the rest expected no change.

"Balance of Risks'

Hyundai Engineering plunged 15 percent to ₩ 62.200 in Seoul today after rate decision from South Korea, and as Hyundai Motor Group and Hyundai Group submitted competing bids for a stake in the largest South Korean manufacturer. Hyundai Group was later named the preferred bidder by Hyo Sang Kim, director of Korea Exchange Bank.

Also in Seoul, Tong Yang Major Corp., a provider of ready-mix concrete, fell 15 percent to 1,825 won.

Reserve Bank of policymakers from Australia, said it raised interest rates this month to counter the expected increase in inflation and the strengthening of mining investment, employment and trade drive the economy.

"The board believes that the balance of risks had shifted to the point that a moderate tightening of prudent monetary policy," the RBA said in minutes of its meeting of November 2 published in Sydney.

James Hardie, which yesterday reported a first quarter loss, fell 2 percent to $ 5.54 in Sydney, after Credit Suisse analysts downgraded the stock to "underperform" from "neutral."

Copper, oil

Rio Tinto Group, the world's third largest mining, sank 0.7 percent to $ 86.44 in Sydney and Santos Ltd., the third largest oil from Australia and gas producer, fell 0.6 percent to $ 13.10, as oil fell for a third day and copper futures fell to 1.2 percent. Japanese commodity trading house Mitsubishi Corp. fell 0.2 percent to 2102 yen in Tokyo.

The MSCI Asia Pacific index has risen 9.3 percent through yesterday, in 2010, compared with gains of 7.4 percent in the S & P 500 and 7.3 percent in the index Stoxx Europe 600. Stocks in the Asian benchmark were valued at an estimated average of 14.4 times earnings, compared with 14.1 times for the S & P 500 and 12.2 times for the Stoxx 600.

Among the stocks that rose today, Sony Corp., the maker of Bravia TVs to get around a fifth of its revenue from the U.S., gained 1.8 percent to 2,841 yen in Tokyo, while Mazda Motor Corp., the second largest exporter of cars from Japan, rose 2.8 percent to 224 yen.

Cathay Pacific Airways Ltd. rose 3.4 percent to $ 22.80 in Hong Kong in Hong Kong after an annual profit forecast better than expected. the largest airline in Hong Kong said earnings for the year will more than double to a record rebound in travel demand and asset sales.