By Anna Prior
International companies trading in New York closed lower
Wednesday as weaker-than-expected euro-zone manufacturing data and
a rise in Italian borrowing costs offset a stronger-than-expected
reading on U.S. retail sales.
The Bank of New York index of ADRs fell 0.5% to 136.26.
In the euro zone, industrial production fell more than expected
in January, while Italy sold $9.11 billion of bonds, less than the
high end of its targeted range, in the first auction after the
government's credit rating was downgraded by Fitch Ratings last
week.
The European index dropped 0.4% to 127.92.
Dutch semiconductor firm ASM International NV (ASMI, ASM.AE)
sank 11% to $35.97 after it said it would sell an 8%-to-12% stake
in ASM Pacific Technology Ltd. via a partial secondary share
placement. The company said it was making this move in order to
address the nonrecognition by markets of the value of the combined
business of the company.
Bucking the trend, however, were shares of U.K.-based insurer
Prudential PLC (PUK, PRU.LN). The company reported a 25% rise in
2012 operating profit--comfortably ahead of expectations--helped by
strong operations in Asia and the U.S., and said it sees continued
growth, with Asia as its key growth driver. It also unexpectedly
raised its 2012 payout by 15.9%, unlike other European insurers
that have been cutting dividends. Shares rose 9.7% to $33.70.
The Asian index edged down 0.2% to 137.27.
Chinese solar-panel maker Suntech Power Holdings Co. (STP,
K3ND.SG) could become the latest victim of the problems besetting
the sector. Suntech looks likely to be bailed out by the Chinese
state, Reuters said, after trade disputes and a global panel glut
have caused prices to collapse. The company, one of the world's
largest solar-panel makers by capacity, will close a facility in
Arizona. Shares tumbled 24% to 83 cents.
The Latin American index sank 1.7% to 330.42, and the
emerging-markets index dropped 1.1% to 285.68.
Argentina toughened its tone Wednesday against Brazil's Vale SA
(VALE, VALE5.BR, VALE3.BR), threatening to revoke the mining firm's
concession to develop the massive Rio Colorado potash deposit after
Value suspended the project earlier this week. The comments seemed
to increase the odds of Vale booking a hefty impairment charge
rather than managing to sell Rio Colorado or negotiating a way to
make the project feasible again. Shares fell 4.4% to $17.80.
Embraer SA (ERJ, EMBR3.BR), however, notched a slight gain after
the Brazilian aircraft manufacturer reported late Tuesday that it
posted a net profit of 253.7 million reais ($129 million) in the
fourth quarter, due to the rise in its sales revenue and the
absence of a one-time provision adopted in the year-earlier period.
Shares edged up 0.5% to $35.47.
Write to Anna Prior at anna.prior@dowjones.com