Aug. 17 (Bloomberg) -- Kawasaki Kisen Kaisha Ltd., which had its biggest daily drop in its share price in eight years, led Asian shipping stocks lower as a tumble in global shares spurred selling of some of this year's best performers in the region.

Kawasaki Kisen, Japan's third-largest shipping line by sales also known as K-Line, fell 13.1 percent to close at 1,292 yen at the end of trading today in Tokyo. It was its biggest drop since a 14.2 percent slide in March 1999. Orient Overseas (International) Ltd., Hong Kong's second-largest shipping company, declined 7.5 percent to HK$72.10 at the close of trading.

Stocks have tumbled globally this week amid concern losses on investments related to U.S. subprime loans will cut profits at lenders and slow growth. A gain in the yen to its strongest in more than a year today against the dollar spurred concern it will decrease the value of Japanese shipping companies' dollar- denominated sales when converted back into the Japanese currency.

``I don't recommend buying at this point,'' said Yoshihisa Miyamoto, an analyst at Okasan Securities Co. in Tokyo with an ``outperform'' rating on all three shipping companies. ``The whole market is down, and I'm not sure when it's going to end. The gain in the yen is adding to selling pressure today.''

Mitsui O.S.K. Lines Ltd., the second-largest shipping company, declined 10.6 percent, its biggest drop since September 2001, to close at 1,450 yen. Nippon Yusen K.K., Japan's largest shipping line, declined 10.4 percent, also its biggest loss since September 2001, and finished at 1,034 yen.

China Shipping Container Lines Co., Asia's second-largest carrier of sea-cargo boxes, fell 4.8 percent to HK$5.33 on the Hong Kong stock exchange.

The yen climbed to as high as 111.61 against the dollar today, the strongest since June 2006. It traded at 112.72 as of 6:16 p.m. in Tokyo. Kawasaki Kisen and Nippon Yusen predict Japan's currency will average 115 yen to the dollar in the second half of this year, while Mitsui O.S.K. forecasts 117.5 yen.

The Topix maritime transportation index, which includes all three shippers, is up 32 percent this year.

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net

Last Updated: August 17, 2007 05:48 EDT