From Bloomberg (link)
Asian stocks dropped from 16-year highs this week, led by BHP Billiton and PetroChina Co., after China’s central bank unexpectedly raised its key lending rate to cool economic growth and crude oil tumbled.
“We’re lightening up on resources shares because we’re not convinced that the hype about Chinese demand quite matches the reality,” said Brian Ingham, who helps manage $83 million at Reward Asset Management in Sydney.
Toyota Motor Corp. and Samsung Electronics Co. led declines by exporters on concern the value of their overseas sales will slide after the yen and won strengthened against the dollar.
Also see commentary from the International Herald Tribune (link)
The ripple effects of China’s move Thursday to brake its economy were surprising only in their magnitude. Commodity markets trembled at the prospect that demand from China would slow if the central bank’s unexpected decision to raise interest rates had the desired effect of cooling industrial growth. Zinc and copper prices tumbled, as did stocks of companies that mine those metals.
