By Shani Raja March 22 (Bloomberg) — Asian stocks fell after an International Monetary Fund official said advanced economies face “acute” challenges tackling public debt and on concern central banks in Asia may step up efforts to curb inflation. BHP Billiton Ltd. , the world’s largest mining company, fell 1.4 percent in Sydney as commodity prices slumped after India’s central bank unexpectedly raised interest rates last week. Rio Tinto Group , the third-biggest, dropped 1.2 percent. Newcrest Mining Ltd. lost 1.1 percent in Sydney after gold prices tumbled the most in six weeks in New York on March 19. Posco, Asia’s biggest maker of stainless steel, declined 1.5 percent in Seoul on speculation global demand will slow. The MSCI Asia Pacific ex Japan Index fell 0.4 percent to 419.64 as of 9:18 a.m. in Tokyo, with three times as many stocks declining as advancing. Japanese stock markets are closed today for a holiday. Australia’s S&P/ASX 200 Index retreated 0.6 percent and South Korea’s Kospi index lost 0.7 percent. India’s central bank unexpectedly raised interest rates for the first time in almost two years on March 19, saying controlling price-gains has become “imperative’ after inflation accelerated to a 16-month high. Advanced economies face “acute” challenges in tackling high public debt, and unwinding existing stimulus measures won’t come close to bringing deficits back to prudent levels, John Lipsky , first deputy managing director of the International Monetary Fund, said in a speech yesterday at the China Development Forum in Beijing. Crude oil dropped the most in three weeks in New York on March 19, slumping 1.9 percent to settle at $80.68 a barrel, while copper futures for May delivery dropped 0.7 percent to $3.3725 a pound. To contact the reporter for this story: Shani Raja in Sydney at sraja4@bloomberg.net .
Visit link:
Asian Stocks Drop on IMF Debt Warning, India Rate Rise; BHP, Posco Decline
