Asian Stocks Fall on China Policy Concern; Japanese Banks Rise

Asian stocks outside Japan fell, dragging down the MSCI Asia Pacific Index for a second day, as Chinese companies declined on concern the government will seek to cool asset inflation. Japanese banks advanced.

Bank of Communications Co. dropped 2.9 percent in Hong Kong after a person with direct knowledge of the situation said China ordered the bank and some other lenders to increase their reserve ratios. Agile Property Holdings Ltd. plunged 7.4 percent after a report showed China’s home prices rose last month. Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank by market value, jumped 4.2 percent in Tokyo after the Financial Times said Group of 20 leaders meeting this week may seek to exempt large Asian banks from stricter global regulations.