an. 12 (Bloomberg) -- Shares of commodity producers and banks in Asia fell and the dollar rose against higher-yielding currencies after China guided its benchmark money-market rate higher and Alcoa Inc. reported disappointing profit.
The MSCI Asia Pacific Index was little changed at 125.70 with an index of material makers sinking 0.8 percent at 2:08 p.m. Tokyo time. The dollar rose against the 15 of the 16 most-active currencies and Treasuries climbed as investors sold emerging- market assets on concern the global economy will take time to recover from last year’s recession. Futures on the Standard & Poor’s 500 Index lost 0.3 percent.
China’s central bank guided its one-year bill yield higher today for the first time in 20 weeks to curb lending growth that has helped power the world’s fastest-growing major economy. Alcoa, the largest U.S. aluminum maker and the first Dow Jones Industrial to report fourth-quarter results, posted profit that trailed forecasts on rising energy and currency costs.
“Investors at present are nervous, with many thinking we’ve had a rally that’s not yet deserved,” said Angus Gluskie, who oversees $300 million at White Funds Management Pty in Sydney. “Most indicators continue to track in a positive direction, but we’ll need to see more economic data to confirm this in investor minds. The below-consensus result from Alcoa is being used as a reason to take money off the table.”
An index of Asia energy companies slid 0.7 percent and banks fell 0.6 percent today. Alumina Ltd. slumped 4.8 percent to A$1.96 in Sydney. The company owns 40 percent of a venture with Alcoa. BHP Billiton Ltd., the world’s biggest mining company, dropped 2.1 percent to A$43.56. Alcoa, which reported after the U.S. market closed, fell 4.3 percent in after-hours U.S. trading.
China Tightens
An index of China’s property stocks dived 0.5 percent after the People’s Bank of China sold one-year bills at a yield of 1.8434 percent in open-market operations, eight basis points higher than last week. Three-month bill rates rose last week. Industrial & Commercial Bank of China Ltd., the nation’s biggest lender, lost 1.3 percent, and Industrial Bank Co. dropped 3.5 percent.
“Tighter liquidity has caused worries among investors that growth will slow a bit this year and that the flow of fresh funds into equities will dry up,” said Wei Wei, an analyst at West China Securities Co. in Shanghai.
Dollar, Treasuries
The dollar strengthened 0.2 percent to $1.4488 per euro. Australia’s dollar dropped to 92.73 U.S. cents from 92.96 cents weakened after a government report showed home-loan approvals dropped 5.6 percent in November, the most in 18 months.
Treasuries rose, sending 10-year notes to their biggest gain in a week. Ten-year note yields declined 2 basis points to 3.80 percent, according to BGCantor Market data. Traders added to bets the Federal Reserve will keep borrowing costs at a record low.
“The economy doesn’t have enough power to lead the Fed to raise rates in 2010,” said Kei Katayama, who oversees $1.6 billion of non-yen debt in Tokyo as leader of the foreign fixed- income group at Daiwa SB Investments Ltd. “I may buy as the yield rises.”
South Korea’s won led declines in Asian currencies on speculation regional central banks will stem their appreciation to protect an export-led recovery. The won weakened 0.3 percent to 1,123.05 per dollar, the Malaysian ringgit slid 0.3 percent to 3.3450 and the Indonesian rupiah fell 0.3 percent to 9,169. All three retreated from their strongest levels since at least September 2008.
Oil, Commodities
Crude oil dropped for a second day in New York on forecasts that cold weather in the eastern U.S. will abate this week, curbing demand for fuel. Oil for February delivery fell as much as 0.7 percent to $81.92 a barrel.
“The cold snap in the U.S. seems to be breaking, according to forecasters,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “For distillates and heating oil that could see some demand coming off in the coming weeks and months.”
Natural gas retraced some of yesterday’s 5.1 percent drop as investors viewed the steepest one-day decline since Nov. 30 as too much, too quickly. Gas for February delivery gained as much as 1 percent to $5.5090 per million British thermal units on Nymex, and was at $5.5000 at 9:33 a.m. in Singapore.
Gold traded little changed at $1,152.20 an ounce in Asia after falling as much as 0.3 percent. The metal touched an all- time high of $1,226.56 on Dec. 3. Copper advanced for a second day, gaining as much as 0.4 percent to $7,595 a ton before trading at $7,560 in Asia.