Asian Stocks Tumble for Fourth Day; Philippines Index Loses 12%

Oct. 27 (Bloomberg) -- Asian stocks tumbled for a fourth day, led by the Philippines, on concern government measures will fail to support growth and prevent more emerging market economies from seeking bailouts from the International Monetary Fund.

Philippine's benchmark index plunged 12 percent, triggering a temporary trading halt, after Ukraine became the fifth nation to ask for IMF help. South Korea's Kospi Index fell 3 percent, paced by Hyundai Heavy Industries Co., as a record interest-rate cut spurred concern the country's economic slump will be more severe than expected.

Mitsubishi UFJ Financial Group Inc. slid 11 percent after the Nikkei newspaper said the bank will need to raise funds.

``This is a bloodbath,'' said Jonathan Ravelas, chief market strategist at Banco de Oro Unibank Inc., which has more than $6 billion in trust assets under management. ``The market continues to focus on the negative economic effects of the financial crisis instead of the actions taken by governments and central banks to restore confidence.''
The MSCI Asia Pacific Index declined 3.5 percent to 77.55 as of 1:17 p.m. in Tokyo, extending a three-day, 13 percent retreat. Financial and energy shares led the losses among the 10 industry groups. New Zealand, Singapore and Malaysia are shut for holidays. Standard & Poor's 500 Index futures were little changed.

Japan's Nikkei 225 Stock Average fell 0.4 percent to 7,679.50, after earlier falling to its lowest level since November 1982 and climbing as much as 3 percent.

Japan is ready to take action on currencies if needed, Finance Minister Shoichi Nakagawa said following Group of Seven comments that it's concerned about the recent excessive movements of the yen. The yen last week rose to a 13-year high against the dollar. Japan previously intervened in the currency market in March 2004.

Funding Costs
The Bank of Korea slashed interest rates by 75 basis points at an emergency meeting today in an attempt to restore confidence after stocks lost a fifth of their value and the won fell to a decade low last week.
The rate cut ``won't make much difference right now,'' Steve Hanke, professor of applied economics at Johns Hopkins University, said in an interview with Bloomberg Television. ``They're really in the middle of a complete panic and probably part of the panic has been created internally by making a kind of ad hoc policy. They don't seem to really have a coherent game plan.''

Traders also increased bets that U.S. Federal Reserve policy makers will cut their target for overnight loans between banks in half to 0.75 percent this week.

Asian money-market rates rose. Hong Kong's three-month interbank lending rate, or Hibor, climbed 0.45 percentage point to 3.74 percent, the most since Sept. 18.

Equity Losses
More than $11 trillion has been erased from the market value of equities so far this month, accounting for almost one-third of the total value wiped off stocks this year. MSCI's index of developed and emerging stock markets plunged 47 percent in 2008, headed for its worst year on record, as credit-related losses topped $660 billion.
Trading on the Philippine exchange was suspended for 15 minutes after the benchmark index sank by 10 percent, the steepest decline since October 1987. The index closed down 12 percent. Banco de Oro Unibank Inc., the second-largest Philippine bank, lost a record 19 percent to 23.75 pesos after its nine- month profit fell.
The Philippine currency slid for the fifth day against the dollar on speculation overseas investors will continue to cut their holdings of the nation's assets. The peso fell 0.7 percent to 49.335, bringing this year's loss to 15 percent.
Indonesia's Jakarta Composite index sank 6.5 percent, while the rupiah tumbled 4.9 percent against the dollar, the biggest loss since April 2001. PT Telekomunikasi Indonesia, the nation's biggest telephone company, fell 9.3 percent to 5,350 rupiah on concern the cost of foreign debt repayments will increase as the currency declines.

Oil Drops
Medco Energi, Indonesia's largest listed oil company, plunged 9.2 percent to 1,975 rupiah. Crude oil dropped 5.4 percent to $64.15 a barrel in New York on Oct. 24.

In Seoul, Hyundai Heavy, the world's biggest shipbuilder, lost 7.4 percent to 107,000 won, in its ninth day of declines. Samsung Heavy Industries Co., the second largest, fell 12 percent to 12,250 won.
Affiliates of South Korea's Hanwha Group tumbled on concern it will struggle to raise funds for its acquisition of Daewoo Shipbuilding & Marine Engineering Co. amid the global credit freeze. Hanwha Corp., which has lost 67 percent this month, plunged the 15 percent daily limit to 14,450 won. Hanwha Chemical Corp., which is set for a 59 percent monthly decline, dropped 15 percent to 4,420 won.

Mitsubishi UFJ fell 11 percent to 607 yen. Mizuho Financial Group Inc. declined 8 percent to 248,300 yen, the lowest since November 2003. Sumitomo Mitsui Financial Group Inc., Japan's third-largest bank, slid 11 percent to 389,000 yen.

Funding Reports
Mitsubishi UFJ may raise as much as 1 trillion yen ($10.6 billion) by selling new shares to improve its finances, the Nikkei newspaper said yesterday. Mizuho Financial and Sumitomo Mitsui may also raise capital, broadcaster NHK reported. The three banks said in separate statements today that nothing has been decided.

Taiwan's Taiex Index tumbled 5.3 percent, led by Hon Hai Precision Industry Co. after regulators widened daily stock trading limits to 7 percent from 3.5 percent.

Hon Hai, the world's largest contract electronics manufacturer, sank 6.9 percent to NT$70.40 in Taipei. Quanta Computer Inc., the biggest notebook-computer maker, tumbled 7 percent to NT$29.35. Cathay Financial Holding Co., Taiwan's largest financial-services company, dropped 6.9 percent to NT$30.20.
`Only God Knows'

``In this kind of market that's moving without sensible reasons, only God knows what's going to happen tomorrow,'' said Yoshinori Nagano, a Tokyo-based senior strategist at Daiwa Asset Management Co., which manages the equivalent of $96 billion. ``That's why people are so scared.'' Industrial & Commercial Bank of China Ltd., the world's largest bank by market value, slid 5.1 percent to HK$2.99 in Hong Kong, a record low. The company said on Oct. 24 that third- quarter profit rose 26 percent, its smallest gain since the bank went public two years ago.

Citic Pacific Ltd., which holds a stake in Cathay Pacific Airways Ltd., slipped 8.7 percent to HK$4.62 in Hong Kong, the lowest since January 1991. About 40 of the company's investors are seeking compensation for stock losses resulting from the company's failed bets on the Australian dollar, the South China Morning Post reported.