Asian stocks had their biggest slide in almost 10 months after oil and metals prices slumped, triggering declines by Inpex Corp and BHP Billiton.
Japanese exporters including Sony Corp and Toyota Motor Corp fell on concern yen gains will erode the local-currency value of their overseas sales.
"Investors are worried about the outlook for commodity prices as the drops were sudden and large," said Takeshi Yamaguchi, who helps manage about US$674 million at Sumitomo Mitsui Asset Co in Tokyo.
The strengthening of the yen "also prompted some investors to shift their money out of exporters," he said.
The Morgan Stanley Capital International Asia-Pacific Index lost 2.4 percent to 125.41 as of 7:50pm in Tokyo, the biggest drop since April 18.
Measures of materials and energy stocks were the two worst performers among the index's 10 industry groups.
Japan's Nikkei 225 Stock Average plunged 2.7 percent to 16,272.68, making it the worst performer in the region. South Korea's Kospi index lost 1.6 percent and Australia's S&P/ASX 200 Index dropped 1.5 percent. Only China's stock indexes rose in the region. Pakistan's market was closed for a holiday.
Crude-oil futures in New York yesterday plunged 3.1 percent to US$63.09 a barrel, the lowest close since Jan. 5 and the biggest single-day decline since Dec. 16. Prices were recently at US$62.79.
Inpex, Japan's largest oil explorer, fell 7.6 percent to ?1.21 million (US$10,212). PetroChina Co (中國石油天然氣), the nation's largest oil company, slid 4.5 percent to HK$7.50 (US$0.97) and Woodside Petroleum Ltd, Australia's second-biggest oil and gas producer, lost 3.3 percent to A$41.35 (US$30.70).
Cnooc Ltd (中國海洋石油) declined 2.9 percent to HK$6.60. Credit Suisse cut its rating on China's largest offshore oil producer to "neutral" from "outperform," after a 67 percent jump in the past year lifted the shares above the brokerage's share-price estimate of HK$6.20.
Among metals prices, copper futures fell from a record in Shanghai, posting the biggest drop in at least three weeks after a report yesterday showed stockpiles reached a 16-month high.
The Reuters Jefferies CRB Index of 19 commodities yesterday fell 2 percent yesterday, the most since June 28.
BHP Billiton, the world's biggest mining company, dropped 5.2 percent to A$24.37. Rio Tinto Group, the third largest, lost 3.1 percent to A$72.75. Sumitomo Metal Mining Co, Japan's second-largest copper smelter, declined 4.7 percent to ?1,620.
Newcrest Mining Ltd, Australia's biggest gold miner, declined 5.6 percent to A$25.17. The MSCI Materials Index, which tracks 117 mining companies and steelmakers, dropped 3.8 percent, the biggest slide among the MSCI's 10 industry groups.
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