Asian stocks fell this week, with Japan's Nikkei 225 Stock Average and benchmarks in Taiwan and Hong Kong posting their first weekly declines in at least six weeks.
Exporters fell on concern a quarter-point interest-rate cut in the US will do little to boost economic growth, corporate profits and demand in the companies' largest market. Sony Corp and Taiwan Semiconductor Manufacturing Co declined.
"Some people in the market had anticipated a 50-basis-point cut, which would have had a bigger impact in stimulating the economy," said Yasushi Morikawa, who helps manage the equivalent of US$110 billion at Sumitomo Mitsui Asset Management Co in Tokyo.
"Unless there's a real recovery seen in the US, it's difficult to see an improvement in exporters' profits." The Nikkei fell 0.2 percent to 9104.06 the past week, its first weekly drop since the five days ended May 16. The Topix index rose 0.5 percent to 903.06 this week, rounding off its sixth straight weekly gain. That's the longest streak since the seven weeks ended July 16, 1999.
Taiwan's TWSE Index shed 1.8 percent this week, its first drop in eight weeks and biggest since the five days to April 25.
Hong Kong's Hang Seng Index shed 2.8 percent, its first decline in nine weeks and biggest since the five days to March 28.
Sony, the second-biggest consumer electronics maker, which relies on the US for more than a quarter of its sales, slid 5.1 percent to ?3,340. That was its first decline since the period to May 9 and the biggest since the five days to May 2.
Moody's Investors Service on Wednesday cut Sony's credit rating cut by one level to A1 from AA3 because competition is eroding earnings. That was the company's first ratings reduction in at least 17 years.
Kyocera Corp, the world's largest maker of ceramic packaging used to protect finished microchips, lost 2.7 percent to ?6,950 in the week. The company gets more than half of its sales outside Japan.
Wednesday, the US Federal Reserve cut its benchmark to a 45-year low of 1 percent. The US economy "has yet to exhibit sustainable growth," the central bank said.
US stocks fell for the week, driving the Standard & Poor's 500 Index to its first weekly drop in five and reducing the benchmark's biggest quarterly gain since 1998. The S&P 500 slipped 2 percent and the Dow Jones Industrial Average lost 2.3 percent.
The NASDAQ Composite Index shed 1.2 percent, its second decline in three weeks.
Yesterday the S&P 500 fell 9.60, or 1 percent, to 976.22. The Dow average slipped 89.99, or 1 percent, to 8989.05.
The NASDAQ retreated 8.75, or 0.5 percent, to 1625.26.
The US economy grew in the first quarter at a 1.4 percent annual pace, slower than the government's preliminary estimate last month of 1.9 percent. Economists surveyed by Bloomberg news had forecast the government wouldn't revise the growth estimate.
"I'm not at all convinced about the prospects for the US economy and a 25-basis-point cut really doesn't do enough," said Masanao Yoshitake, who helps manage the equivalent of US$2.5 billion at Meiji Dresdner Asset Management Co. "It's quite difficult to find any reasons to buy" stocks.
Taiwan Semiconductor, the world's largest maker of computer chips on a subcontracting basis, shed 2.6 percent to NT$57 this week, while largest rival United Microelectronics Corp lost 5.8 percent to NT$22.60.
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