Asian Bank Stocks Fall on Higher Lending Costs; Newcrest Jumps

Nov. 24 (Bloomberg) -- Asian financial stocks declined after bank borrowing costs climbed amid concerns over rising defaults, countering gains in commodity-related shares.

“Financial stocks are out favor and their earnings will continue to be under pressure due to the credit crisis,” said Paul Joseph Garcia, who helps manage $1.5 billion as chief investment officer at ING Investment Management Ltd.’s Manila unit.

Most Asian markets fell today, with Japan shut for a holiday. The MSCI Asia Pacific excluding Japan Index declined 1.1 percent to 204.18 as of 11:48 a.m. in Hong Kong. Financial stocks contributed the most to the drop. The gauge is down 61 percent this year, leaving it at 8.6 times estimated profit, about half its valuation at the start of 2008.