Asian stocks dropped a third day after Japan’s largest manufacturers became more pessimistic and a report showed China’s factory output shrank for an 11th month amid a global economic slowdown that has sapped export demand.
Komatsu Ltd. (6301), a Japanese maker of construction equipment maker that gets about 14 percent of sales from China, slipped 2 percent in Tokyo. Toyota Motor Corp., the world’s biggest carmaker by market value, fell 1.3 percent. Santos Ltd., Australia’s No. 3 oil producer, slid 0.5 percent as crude futures declined.
The MSCI Asia Pacific Index (MXAP) declined 0.5 percent to 121.81 as of 9:35 a.m. in Tokyo. Markets in China, Hong Kong and South Korea are closed today for holidays. The regional benchmark index fell in the past two weeks amid concern political discord will prevent Europe from resolving its debt crisis.
“People still have to downgrade their assumptions for economic growth, and that will probably flow through the next quarter or next half in lower profit assumptions for companies,