HONG KONG, June 25 — Asian stocks swung between gains and losses as raw-material producers fell on concern a cash crunch in China will curb growth in the world’s second-largest economy.

Japan’s Topix index erased losses as the yen fell.

BHP Billiton Ltd, the world’s biggest mining company, decreased 0.8 per cent in Sydney.

Newcrest Mining Ltd, Australia’s top gold producer, fell 2.1 per cent as the bullion traded near a September 2010 low.

Canon Inc added 1.1 per cent, pacing gains among Japan’s electronics makers and automotive companies as a weaker yen boosted the value of overseas income at Japanese exporters.

The MSCI Asia Pacific Index gained 0.5 per cent to 126.45 as of 10.58am in Tokyo, erasing losses of 0.4 per cent.

The gauge fell 13 per cent from this year’s high on May 20 through yesterday after Federal Reserve Chairman Ben S. Bernanke said last week the US central bank may start dialing down its stimulus efforts if the economy achieves sustainable growth, and money market rates in China surged to record highs.

“The Chinese central bank is sacrificing short-term pain for long-term sustainable growth,” Matthew Sherwood, Sydney- based head of investment market research at Perpetual Ltd., which manages about US$25 billion (RM80 billion), said by e-mail.

“Investors continue to come to grips with the concept of reduced central- bank support in the US and a credit squeeze in China and what this means for global growth and asset prices.”

Japan’s Topix index added 0.4 per cent, after falling 0.8 per cent earlier. The benchmark Nikkei 225 Stock Average advanced 0.9 per cent, reversing losses of as much as 0.8 per cent. China’s Shanghai Composite Index slid 0.1 per cent and Hong Kong’s Hang Seng Index rose 0.7 per cent.

Australia’s S&P/ASX 200 Index rose 0.4 per cent after earlier falling 0.3 per cent, while New Zealand’s NZX 50 Index declined 0.4 per cent.

Relative Value

Shares on the Asia-Pacific gauge on traded at 12.2 times estimated earnings yesterday, compared with multiples of 14.2 for the Standard & Poor’s 500 Index and 12.2 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Futures on the S&P 500 Index added 0.4 per cent today. The gauge yesterday dropped 1.2 per cent to its lowest level since April 22, briefly slipping below a 2007 closing high of 1,565.15. The index surpassed that peak in March, recovering all its losses from the financial crisis.

Raw-material producers and energy companies led the decline among the 10 industry groups in the MSCI Asia Pacific Index. Copper traded near the lowest in almost three years, while oil headed for its fourth decline in five days. – Bloomberg