Decline of Asian Stocks as Won, Kiwi Drop on U.S. rating Outlook

April 18, 2011, 10: 29 EDT by Shiyin Chen and Anna Kitanaka

April 19 (Bloomberg)--Asian stocks fell, sending the benchmark in the region to its largest loss in five weeks, while the South Korea won and the New Zealand dollar has led to a decline of higher yield currencies after Standard & Poor's credit Outlook cut on the United States to negative.

The MSCI Asia Pacific Index slipped 1.3% 133.84: 10 h 55 in Tokyo. Future on the S & P 500 Index dropped by 0.5%. Won weakened from 0.5% to 1,093.75 per dollar, while the so-called kiwi dropped from 0.8 percent to 78.50 U.S. cents. The yen climbed against the 16 most actively traded counterparts. Japanese Government bond futures rose for a fifth day. Gold was little changed near its record high. Monte copper for the first time in seven days.Japanese exporters led to losses, extending to a global slump in stock markets, after S & P to the Government of the United States notice that it risks losing its AAA credit rating, unless decision makers to agree on a plan in 2013 to reduce budget deficits and national debt. In Europe, an economic report today can show manufacturing growth slowed, as concern apparent worsening of the debt crisis of the Greek and Portuguese bond yields sent region breaks out. "" If we get to a point where the United States has its debt downgraded, the deflationary effects will be felt in the world, "said Tim Schroeders, that allows to manage about 1 billion dollars to Pengana Capital Ltd. in Melbourne. "A lot of credit is a price excluding U.S. denominated debt and these effects will be felt around the world."Approximately five shares fell to everyone who has acquired Asia Pacific the MSCI Index. Nikkei 225 Stock average of the Japan fell 1.6%, with Toyota Motor Corp. drop of 2.6%.Chip EarningsAdvantest Corp. and Elpida Memory Inc. fell 3.9% each, the stimulation of losses related to the computer chip companies after Texas Instruments Inc. forecast second-quarter revenue and profit which did not estimates of some analysts. Texas Instruments, the largest manufacturer of analog-chip, has decreased in extended trade.Goldman Sachs Group Inc. and Johnson & Johnson are among the companies expected to release quarterly results today. The S & P 500 has dropped 1.1% yesterday, its biggest loss since March 16, after S & P said there is a chance of one to three that the rating may be cut in two years.Yields on 10-year Treasuries were little changed at 3.38% after having declined yesterday the three basis points. Performance of 10 years for the Japan reference point was little changed at 1.24%, while that future of the requirement of 10 years for June delivery gained 0.12 to 139.48 at the Tokyo Stock Exchange.Yen StrengthensThe of yen traded to 82.52 82.66 dollar in New York yesterdayWhen it was 82.19, the highest since March 29. Currency of the Japan was a euro 117.66 117.56. The dollar bought $1.4242 per euro of $1.4235.Gold for immediate delivery traded at $1,492.60 an ounce. Bullion yesterday rose for a fourth day, reached a record level of $1,497.90 yesterday. Copper for the delivery of three months has acquired 0.8% to $9,296 per metric tonne on the London Metal Exchange, halting a slump of 6.6 per cent of six days. Wheat gained 0.9% to $8.18 a bushel, which extends from the wave of 3.9% of yesterday.

-With the help of Candice Zachariahs Sydney, Yoshiaki Nohara in Tokyo and Masaki Kondo, Ron Harui and Wes Goodman at Singapore. Editor: James Poole

To contact the reporter on this story: Shiyin Chen at Singapore at schen37@bloomberg.net. Anna Kitanaka in Tokyo, at akitanaka@bloomberg.net.

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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