ADR REPORT-Drops in Asia drag foreign shares lower

Tue Mar 12, 2013 2:38pm EDT
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NEW YORK, March 12 (Reuters) - U.S.-listed shares of foreign companies fell on Tuesday, dragged lower by Asian companies as traders cashed in after a recent rally in Japan, while China stocks extended a negative streak.

Japanese shares retreated after Tokyo's Nikkei snapped an eight-day winning streak, with the BNY Mellon index of American depositary receipts of Japanese companies down 1.4 percent after hitting a two-year high on Monday.

Chinese ADRs fell alongside the local market after official media reported that the country's banking regulator has launched a nationwide probe of wealth management products.

ADRs of China Life tumbled 3.7 percent to $43.73 after the company said late on Monday its chairman's comments about an improvement in profits were his opinion and should not be taken as an earnings forecast.

The BNY Mellon index of Chinese ADRs dropped 1.7 percent.

The broader BNY Mellon index of leading ADRs fell 0.6 percent. In comparison, the benchmark S&P 500 index lost 0.5 percent.

The BNY Mellon index of leading European ADRs lost 0.4 percent, while the FTSEurofirst 300 index of top shares closed down 0.05 percent.

Spain's BBVA fell 1.6 percent to $9.86 and RBS added 1.6 percent to $9.14.

The BNY Mellon index of leading Latin American ADRs fell 0.3 percent, weighed again by declines in Mexican and Brazilian markets.

Mexican telecommunications firm America Movil's ADRs extended Monday's losses after the government presented a reform bill aimed at stoking greater competition. They were down 1.7 percent at $20.60.

ADRs of Televisa, which could also be affected by the new law, have inched higher in the past two sessions despite declines in the company's Mexican stock.