May 22 (Bloomberg) -- Asian stocks fell, paring the MSCI Asia Pacific Index’s gain this week, after Lenovo Group Ltd. reported a wider-than-estimated loss and the yen strengthened to a two-month high against the dollar.

Sony Corp., which gets 24 percent of its revenue from America, slipped 2 percent in Tokyo on a worse-than-expected U.S. jobless claims report. Lenovo, China’s biggest maker of personal computers, tumbled 6.4 percent in Hong Kong after saying it faces a “very challenging” market. BHP Billiton Ltd., the world’s biggest mining company, fell 2.7 percent in Sydney after commodity prices sank yesterday.

Two stocks declined for each one that advanced on the MSCI Asia Pacific Index, which fell 0.2 percent to 99.51 as of 7:15 p.m. in Tokyo. Losses were limited as a strengthening yen boosted the value of Japanese stocks on the dollar-denominated gauge. The index is up 2.3 percent this week, and has climbed 41 percent from a five-year low on March 9.

“The rebound up until this point has been driven by two factors -- a feeling that the worst is over and improving economic indicators,” said Takashi Kamiya, chief economist at T&D Asset Management Co., which oversees about $16 billion. “The million-dollar question going forward is whether data such as U.S. production numbers can continue to improve. I doubt it.”

Japan’s Nikkei 225 Stock Average sank 0.4 percent even as the central bank upgraded its economic assessment for the first time since July 2006. Hong Kong’s Hang Seng Index declined 0.8 percent, while China’s Shanghai Composite Index lost 0.5 percent.

Jobless Claims

Australia’s S&P/ASX 200 Index dropped 1.4 percent, led by Rio Tinto Group, after the Financial Times said Aluminum Corp. of China won’t agree to a stake of less than 15 percent in the company. GPT Group, an Australian real-estate investment trust, climbed 4.3 percent and IHI Corp., Japan’s No. 2 maker of heavy machinery, jumped 6.9 percent on brokerage upgrades.

Futures on the U.S. Standard & Poor’s 500 Index gained 0.7 percent. The gauge declined 1.7 percent yesterday as a Labor Department report showed initial jobless claims fell by 12,000 to 631,000 in the week ended May 16, while economists had expected claims would drop to 625,000. The previous week’s figures were revised higher.

Bill Gross, co-chief investment officer of Pacific Investment Management Co. said in a televised interview the U.S. will “eventually” lose its top AAA credit rating. Standard & Poor’s yesterday slashed its outlook on the U.K.’s AAA rating to “negative” from “stable,” citing swelling debt.

The rally since March has driven the average value of stocks included in the MSCI Asia Pacific Index to 43 times trailing earnings, the most expensive level since 2003.

Yen Strength

Sony, the maker of Bravia televisions, slipped 2 percent to 2,450 yen. Shin-Etsu Chemical Co., the world’s largest maker of silicon wafers, slid 2.9 percent to 5,000 yen. Nintendo Co., which generated 40 percent of its sales in the Americas last year, dropped 2.2 percent to 25,430 yen.

The Japanese currency strengthened to as high as 93.87 per dollar, a level not seen since March 19, from 94.56 at the 3 p.m. close of stock trading in Tokyo yesterday. Japanese large manufacturers anticipate the yen will trade at an average of 97.18 versus the dollar this fiscal year, the Bank of Japan’s Tankan quarterly survey showed last month.

Lenovo, which makes Thinkpad laptops, slumped 6.4 percent to HK$2.80 after reporting a fiscal fourth-quarter loss of $264 million. The company was expected to post a loss of $211 million, the median of analyst estimates in a Bloomberg survey.

BHP dropped 2.7 percent to A$33.46. Woodside Petroleum Ltd., Australia’s second-largest oil producer, dropped 4.5 percent to A$42.41. Posco, South Korea’s top steelmaker, fell 3.2 percent to 398,500 won. Rio sank 3.3 percent to A$64.44.

Oil, Copper

Crude oil for July delivery declined 1.6 percent to $61.05 a barrel in New York yesterday, the first drop this week. Copper slumped 2.6 percent. A gauge of six metals in London dropped 3.7 percent, the most since April 20.

GPT climbed 4.3 percent to 49 cents, extending yesterday’s 4.4 percent gain. The shares rose for a second day after the company’s stock rating was raised to “neutral” from “underperform” at Credit Suisse Group AG.

IHI jumped 6.9 percent to 170 yen after Merrill Lynch & Co. lifted the shares to “buy” from “underperform” as concerns about its balance sheet and earnings recovery fade.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: May 22, 2009 06:17 EDT