June 25 (Bloomberg) -- Asian shares fell, led by Sony Corp. and BHP Billiton Ltd., on concern figures this week will show a drop in U.S. home sales, signaling declining demand in the region's largest export market.
``Stocks globally take a fall every time there's more bad news on U.S. housing-related or lending data because there's a threat that this may spill over into other parts of the economy,'' said Eric Betts, a strategist at Nomura Australia Ltd. in Sydney. ``This wouldn't be good for companies that depend on the U.S. consumer.''
Citic Securities Co. led the CSI 300 Index to its biggest drop in three weeks after China's central bank governor Zhou Xiaochuan said the country's shares may be overvalued and interest-rate increases couldn't be ruled out.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.4 percent to 153.03 as of 7:15 p.m. in Tokyo. Japan's Nikkei 225 Stock Average lost 0.6 percent. Taiwan Semiconductor Manufacturing Co. led the Taiex Index to a seven-year high after Citigroup Inc. raised its recommendation on the island's stock market. Thailand, India, Pakistan and Vietnam were the only other benchmarks in the region to rise.
Takeda Pharmaceutical Co. advanced after a study found the company's Actos drug may lower the risk of heart attack and death in diabetic patients with kidney disease.
U.S. stocks dropped on June 22, sending the Standard & Poor's 500 Index to its worst week since early March. The near collapse of a Bear Stearns Cos. hedge fund spurred speculation investors will have to write down the value of securities containing subprime mortgages.
Home Sales
Sony, the world's biggest maker of game consoles, fell 1.4 percent to 6,460 yen. BHP Billiton, the biggest mining company, lost 1.2 percent to A$34.94. Hynix Semiconductor Inc., the world's second-largest memory chipmaker, dropped 2.9 percent to 33,700 won.
A report later today from the National Association of Realtors may show sales of previously owned homes fell to an annual pace of 5.972 million in May from 5.99 million a month earlier, according to the median estimate of economists surveyed.
Tomorrow, the Commerce Department is forecast to report new homes sold at a 925,000 annual rate, down from April's 981,000 pace. The total of 6.897 million of combined sales based on the two estimates would be the lowest since April 2003.
Bubble Warning
Citic Securities, China's biggest publicly traded brokerage, lost 4.6 percent to 55.55 yuan. Shanghai International Airport Co., operator of the country's second-busiest airfield, fell 4.5 percent to 38 yuan. The CSI 300, which dropped 4.3 percent today after a 3.5 percent decline on June 22, has almost doubled in value this year.
China is worried its equity markets may be overvalued and is watching developments closely, Zhou told reporters in Basel, Switzerland, where he attended a meeting of central bankers at the weekend.
``We don't rule out further rate increases if necessary'' and inflation remains a concern, Zhou said.
``Zhou's remarks are damping sentiment in the market and as a result investors may be selling for fear of further'' policy initiatives, said Fan Dizhao, who helps manage about $1.8 billion at Guotai Asset Management Co. in Shanghai.
Taiwan's Taiex jumped 1.4 percent, to its highest since June 2000. Citigroup, the world's largest financial services company, raised its rating on the market to ``overweight'' from ``underweight.''
Government Approval
``Taiwan stocks are undervalued,'' said Eric Chou, who helps manage $1.8 billion at Jih Sun Securities Investment Trust Co. in Taipei. ``Citigroup upgraded Taiwan by two notches, and that will prompt some overseas funds to boost their Taiwan holdings.''
Taiwan Semiconductor, the world's largest maker of customized chips, added 3.1 percent to NT$70.40. The stock also rose after the Commercial Times reported revenue at the company may soar to NT$27.5 billion ($840 million) in June on orders from companies including Texas Instruments Inc. and Qualcomm Inc.
Advanced Semiconductor Engineering Inc., the world's biggest chip packager and tester, jumped 1.5 percent to NT$44.45. The company is among four chip packaging and testing groups that have received approval from the Taiwan government to invest in China, the Commercial Times reported without citing sources.
Greatek Electronics Inc. and Walton Advanced Engineering Inc. also received tacit approval from Taiwan's economic ministry while formal consent has yet to be given, the newspaper said. Greatek surged 3.4 percent to NT$58. Walton rose 5.1 percent to NT$22.70.
Sinopec, Takeda
China Petroleum & Chemical Corp., known as Sinopec, fell 2.9 percent to HK$8.79 in Hong Kong and 5.7 percent to 13.47 yuan in Shanghai, after the company said Chairman Chen Tonghai resigned for ``personal reasons.''
Asia's largest refiner said it will hold an extraordinary general meeting in Beijing on Aug. 10 to elect Su Shulin, a former China National Petroleum Corp. executive, as a director.
Takeda, Japan's No. 1 drugmaker by market value, jumped 1.2 percent to 7,950 yen. Actos may cut the risk of heart attack and death by 44 percent, according to findings reported on June 23. In a separate study, Actos reduced inflammation and blood clots more than a placebo.
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