Energy scrips gain

GLOBAL MARKETS/ STOCK REPORT

Asian mining and energy stocks rose, led by BHP Billiton and PetroChina Co, after copper prices jumped the most in three months and crude oil closed at a record. Japanese shares fell, wiping out earlier gains, following the resignation of Prime Minister Shinzo Abe.

Mitsubishi UFJ Financial Group and Mizuho Financial Group declined, with a measure of financial shares accounting for more than half of the 0.3 per cent drop in Japan's Topix index.

"It's quite clear we'll have a period of uncertainty and markets don't like uncertainty," said Marshall Gittler, who helps oversee $26 billion as chief Asian strategist at Deutsche Bank Private Wealth Management in Singapore. "In the long term, it's a plus for the markets. Abe was an ineffective prime minister who didn't do anything of value for investors."

Hutchison Whampoa jumped the most in two months, helping drive Hong Kong's Hang Seng Index to a record, after the London-based Times reported the company had put its Italian mobile-phone unit up for sale.

South Korea's Kospi index lost 1.8 per cent, the region's biggest decline, and benchmarks also fell in Australia, Indonesia and New Zealand.

The Morgan Stanley Capital International Asia-Pacific Index added 0.2 per cent to 150.60 at 5:44 p.m. in Tokyo, with a measure of energy stocks posting the biggest gain among the benchmark's 10 industry groups.

Sun Hung Kai Properties advanced as investors bet lower borrowing costs will boost demand for Hong Kong property. AU Optronics Corp led gains in Taiwan on speculation the company's earnings will surge in the second half.

US, Europe
European stocks dropped after Morgan Stanley cut its recommendation on the region's biggest airlines and a disappointing forecast from Texas Instruments Inc weighed on technology shares. US index futures fell.

Deutsche Lufthansa AG and Air France-KLM Group retreated. STMicroelectronics NV and Infineon Technologies AG led declines by semiconductor companies in the region.

The Dow Jones Stoxx 600 Index lost 0.3 per cent to 367.41, while Standard & Poor's 500 Index futures expiring in September fell 0.3 per cent to 1,467.8 as of 10:36 a.m. in London.

The Stoxx 600 has dropped 8.2 per cent since reaching a 6 1/2-year high on June 1 on mounting concern the turmoil in the credit markets may spill over into the broader economy and erode earnings growth.