Asian Stocks Fall for Fourth Day; BHP Billiton Leads Decline

Dec. 17 -- Asian stocks fell for a fourth day, led by BHP Billiton Ltd. and National Australia Bank Ltd., on concern accelerating inflation in the U.S. and Europe will curb spending and limit further interest-rate cuts.

BHP dropped to a three-week low after halting a planned share buyback and on speculation demand for commodities will wane. A report on Dec. 14 showed U.S. consumer prices rose the most since September 2005 last month, leaving the Federal Reserve less leeway to reduce rates to boost growth. Centro Properties Group plunged 70 percent in Sydney after the owner of U.S. shopping malls cut its forecast as subprime-mortgage losses dent spending.

``Higher inflation in the U.S. will have the direct effect of reducing consumer purchasing power,'' said Angus Gluskie, who helps manage the equivalent of $500 million at White Funds Management in Sydney. ``Investors are recognizing that they're not going to get the saving grace from the U.S. subprime situation that they've been looking for.''

The MSCI Asia Pacific Index lost 2 percent to 154.94 as of 12 p.m. in Tokyo, adding to a three-day, 5.1 percent drop. The measure is set for its longest losing streak since the four days ended Nov. 13. Nine of the index's 10 industry groups dropped. Benchmarks declined in all Asian markets open for trading.

Japan's Nikkei 225 Stock Average fell 0.2 percent to 15,482.15. Mitsubishi UFJ Financial Group Inc. led banks lower after Nomura Holdings Inc. said the country's three largest lenders were being asked to contribute too much to a subprime- asset bailout fund.

Accelerating Inflation

U.S. stocks fell on Dec. 14, pushing the Standard & Poor's 500 Index down 1.4 percent. U.S. consumer price index increased 0.8 percent in November, the Labor Department said Dec. 14. Economists surveyed by Bloomberg News had expected a rise of 0.6 percent.

Meanwhile, European inflation accelerated last month to 3.1 percent, the fastest pace since May 2001, preventing the European Central Bank from cutting interest rates to counter slowing economic growth.

BHP, the world's No. 1 mining company, slipped 2.9 percent to A$40.82, headed for its lowest close since Nov. 23. Rio Tinto Group, the third-biggest, slid 3.8 percent to A$132.02. National Australia Bank, the nation's largest lender, lost 1.7 percent to A$37.78.

BHP also suspended a plan to buy back $10 billion of its shares traded on the London Stock Exchange amid a proposal to acquire rival Rio Tinto.

Centro Properties, a Melbourne-based owner of almost 700 U.S. shopping malls, slumped 70 percent to A$1.725, its steepest decline on record. Westfield Group, owner of 59 malls in the U.S., declined 4.6 percent to A$19.82.

Centro reduced its earnings forecast because the fallout from U.S. subprime mortgage defaults pushed up international borrowing costs. Its dividends are expected to be 40.6 Australian cents in the year to June 30, 2008, down from 47 cents in a previous forecast, Centro said. The company won't pay a dividend in the first half.