Asian stocks fell on fears that stalled talks over resolving Europe's debt crisis will hurt the prospects of Asian companies exporting their products to Europe.
The Japanese Canon, which realizes 30% of sales in the Old Continent, has experienced a contraction of 4,2%. The world's third largest miner Rio Tinto was down 2,4% as the decline in copper prices affected the entire sector. Australia's largest gold producer Newcrest Mining fell 2,1% in Sydney following a downgrade for the firm by JPMorgan Chase.
The MSCI Asia Pacific index fell 0,8% to 122.45 as of 10:37 am in Tokyo, with at least four stocks down for one stock up. The Nikkei 225 Stock Average also lost 0,8%, while South Korea's Kospi fell 1,2%. The Australian S&P/ASX 200 (-0,7%) and the Shanghai Composite (-0,9%) also lost.
“A period of consolidation is ahead,” said George Boubouras, head of UBS's Australian investment strategy unit. “Europe will have to face new challenges for some time to come. As the end of the quarter approaches, investors will adjust their portfolios across all asset classes. This will lead to some realization and portfolio rotation.”
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