June 19 (Bloomberg) -- Asian exporter stocks fell after a report showed confidence in the U.S. homebuilding industry slipped to a 16-year low and oil prices traded near the highest in nine months.
Nissan Motor Co. and James Hardie Industries NV led a drop among companies that rely on U.S. sales on concern growth in the world's largest economy will slow. Tokyo Electric Power Co. and Hanjin Shipping Co. fell on speculation rising fuel costs will erode profits, while Woodside Petroleum Ltd. gained.
``While we're seeing that U.S. growth isn't as weak as we had feared, the problems with housing have always been a risk,'' said Teo Chon Kiat, who helps manage about $8 billion at DBS Asset Management Ltd. in Singapore. ``Rising crude-oil prices will also have an impact on investors' sentiment, even though we're not seeing this filter into inflation yet.''
Declines were limited as brokerages including Merrill Lynch & Co. raised their ratings on Daiichi Sankyo Co., Japan's second- largest drugmaker, to ``buy.'' South Korea's Hyundai Engineering & Construction Co. jumped after Daewoo Securities Co. said the building industry was entering a period of ``long-term growth.''
The Morgan Stanley Capital International Asia-Pacific Index was little changed at 153.28 as of 8:31 p.m. in Tokyo. The measure rose to a record yesterday. Japan's Nikkei 225 Stock Average climbed 0.1 percent to 18,163.61, while the broader Topix index dropped 0.4 percent.
India's Sensitive Index jumped 1.5 percent, the biggest advance in the region, led by ICICI Bank Ltd. after stock in a domestic share sale was snapped up. Measures rose elsewhere, except in Thailand, the Philippines and Pakistan. Markets in Hong Kong and Taiwan were closed for holidays.
Speed-Control
The Standard & Poor's 500 Index declined 0.1 percent yesterday in the U.S., paced by homebuilders Lennar Corp. and Centex Corp. The National Association of Home Builders/Wells Fargo index of sentiment declined to 28 this month from 30 in May, the lowest since February 1991. Economists surveyed by Bloomberg News forecast the gauge to stay unchanged.
Nissan, Japan's No. 3 automaker, dropped 1.5 percent to 1,340 yen. The company generated more than 40 percent of its fiscal 2006 revenue in North America. James Hardie, the biggest supplier of home siding in the U.S., fell 1.3 percent to A$9.25 in Australia.
The housing-market data ``will act as a speed-control mechanism for markets,'' said Kim Jun Ki, who manages $1.1 billion at Hanwha Investment Trust Management Co. in Seoul. ``The picture in the U.S. looks OK except for the property market.''
Tokyo Electric, Asia's biggest electricity producer, lost 1.3 percent to 3,880 yen. Kansai Electric Power Co., Japan's No. 2 utility, dropped 2.3 percent to 2,825 yen. Korea Electric Power Corp., the supplier of almost all the power in Asia's third- largest economy, declined 0.1 percent to 41,750 won.
On a Tear
Hanjin Shipping, South Korea's largest shipping line, lost 2.1 percent to 37,950 won. Mitsui O.S.K. Lines Ltd., Japan's No. 2 shipping company by sales, slid 2.5 percent to 1,580 yen. Nippon Yusen K.K., Japan's biggest, declined 1.5 percent to 1,143.
Higher oil prices will erode earnings for fuel-reliant companies including utilities and transport companies. Futures for July jumped 1.6 percent to $69.09 a barrel in New York yesterday, the highest close since Sept. 1 and its fourth consecutive gain. Prices were recently at $68.77.
``The price of oil has been on a tear recently,'' said Hiroyoshi Nakagawa, who helps look after about $1 billion in Asian equities at Societe Generale Asset Management Co. in Tokyo. ``Companies that are moving things from one place to another are going to be hard hit by higher fuel costs.''
Woodside, BHP
Woodside Petroleum, Australia's second-biggest oil producer, rose 2 percent to A$46.85. The shares also gained after LNG Intelligence said 34 percent shareholder Royal Dutch Shell Plc may bid for the company. Santos Ltd., the third largest, jumped 3.4 percent to A$14.44.
BHP Billiton Ltd., the world's largest mining company and Australia's No. 1 oil producer, rose 0.7 percent to a record A$34.92. The Times of London said BHP is reviving plans for a $40 billion takeover of Alcoa Inc.
``A deal in the industry isn't out of the question considering the commodities cycle,'' said Gary Armor, who helps manage $2.9 billion at AMP Ltd. in Sydney, including Woodside and BHP. ``Woodside is a particularly attractive option but Shell would have to consider its terms very carefully if it's to clear government approval.''
Drugmakers, Builders
Daiichi Sankyo jumped 4.4 percent to 3,360 yen. The drugmaker's stock rating was raised to ``buy'' from ``neutral'' at Merrill Lynch, while Daiwa Institute of Research raised its recommendation on the shares to ``buy'' from ``outperform.''
Astellas Pharma Inc., Japan's third-biggest drugmaker, added 0.4 percent to 5,420 yen. Chugai Pharmaceutical Co., the Japanese unit of Switzerland's Roche Holding AG, climbed 0.4 percent to 2,360 yen.
Hyundai Engineering, South Korea's No. 2 builder by market value, jumped 4.3 percent to 74,600 won. Daewoo Engineering & Construction Co., the biggest, advanced 2.4 percent to 27,800 won. Daelim Industrial Co., the fifth largest, surged 9.2 percent to 155,000 won.
The South Korean government will ease restrictions on the housing market to increase supply, while overseas orders will increase, wrote Lee Sun Il, an analyst at Daewoo Securities, in a report.
``The major builders are getting more of their sales from abroad,'' said Chung Yun Sik, who oversees about $6 billion in equities at Daehan Investment Trust Management Co. in Seoul. Also, ``domestic property-market policy will probably change for the better, turning toward a more market-friendly stance.''
Hyundai Heavy, ICICI
Also in South Korea, Hyundai Heavy Industries Co. advanced after Korea Investment & Securities Co. lifted its six-month share-price estimate by 41 percent to 500,000 won, saying ship prices will rise further. Shares of the world's biggest shipbuilder jumped 5.2 percent to 342,000 won.
ICICI Bank led Indian lenders higher after its domestic share sale received bids for the entire offering within 20 minutes of the opening.
ICICI gained 26.55 rupees, or 2.9 percent, to 944.4. In the nation's largest share sale, half the $4.3 billion of stock allocated to domestic investors was snapped up, while the other 50 percent was due to be sold overseas later in the day.
Investors bid for as many as 100.5 million shares, compared with the 98.87 million shares on offer earlier, India's National Stock Exchange said on its Web site.
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