AGL Energy Ltd. sank 3 percent in Sydney as the firm’s A$1.51 billion ($1.35 billion) deal to buy government-owned power plants in Australia’s most-populous state was blocked by the nation’s antitrust regulator. Taisho Pharmaceutical Holdings Co. gained 5.1 percent in Tokyo, leading a rally in health-care shares.

The MSCI Asia Pacific Index rose less than 0.1 percent to 136.69 as of 9:43 a.m. in Tokyo after falling as much as 0.4 percent. Investors are weighing signs of a global economic recovery against increasing tensions in the Crimea after Ukraine accused Russia of threatening to seize its warships in the Crimea. U.S. Secretary of State John Kerry is due to arrive in Kiev amid the worsening standoff.

Japan’s Topix index climbed 0.1 percent after erasing losses of as much as 0.9 percent. South Korea’s Kospi index declined 0.3 percent. Australia’s S&P/ASX 200 Index (AS51) added 0.2 percent, with the central bank projected to keep interest rates at a record low today. New Zealand’s NZX 50 Index rose 0.5 percent, extending gains from yesterday’s record close. Markets in China and Hong Kong are yet to open.

The MSCI Asia Pacific Index climbed 5.9 percent from this year’s low on Feb. 4 through last week. The gauge yesterday traded at 12.9 times the estimated earnings of its constituent companies, compared with 15.7 for the S&P 500 and 14.3 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Ukraine Crisis

Crimea, where ethnic Russians comprise the majority, has become the focal point of Ukraine’s crisis after an uprising triggered last month’s ouster of President Viktor Yanukovych. Ukraine has mobilized its army and called for foreign observers after Russian forces took control of the peninsula. Russia, which keeps its Black Sea fleet at Sevastopol, raised its key interest rate yesterday as asset prices plummeted.

In China, the National People’s Congress annual meeting begins tomorrow. The latest meeting of the legislature, the first to be overseen by President Xi Jinping and Premier Li Keqiang, comes as leaders pledge to give markets a “decisive” role in the economy.

Investors will be watching the NPC meeting for clues to the next steps to fix local-government finances, charge market prices for natural resources, rein in shadow-banking risks, free up deposit rates and open up state businesses to private investment.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editor responsible for this story: Sarah McDonald at smcdonald23@bloomberg.net

http://www.bloomberg.com/news/2014-03-04/asia-stocks-drop-third-day-as-yen-holds-gains.html

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