NEW YORK (Dow Jones)--International companies trading in New York fell slightly Monday as mining stocks were pressured after the Australian government revealed a plan to impose heavier taxes on miners.
The Bank of New York index of ADRs slipped 0.1% to 131.55.
Mining companies fell sharply as investors factored in lower earnings for the companies after the Australian government said Sunday that it plans to introduce a 40% tax on the industry's profits.
Credit Suisse analysts said the proposals could force the country's two largest miners, BHP Billiton Ltd. (BHP, BHP.AU) and Rio Tinto Plc (RTP, RIO.LN), back to the negotiating table on their proposed A$116 billion joint venture to combine their iron-ore assets in Western Australia's Pilbara region. BHP's shares fell 2.7% to $59.38 while Rio Tinto's closed down 5.8% to $47.92. Yanzhou Coal Mining Co. Ltd. (YZC, 1171.HK), which has assets in Australia, also reacted to the news. It closed down 4.3% to $26.66.
The European index slid 0.1% to 119.62.
Greek banking shares were mostly lower amid investor fears over the outlook for the Greek economy and its impact on the financial sector, offsetting otherwise welcome news about a special loan fund and easier credit restrictions for Greek banks. National Bank of Greece SA (NBG, ETE.AT) fell 1.8% to $3.20.
BP Plc (BP, BP.LN) again fell as it vowed to pay "all necessary and appropriate clean-up costs" from the U.S. oil-spill disaster in the Gulf of Mexico that is threatening the Gulf Coast. The oil company's shares slipped 3.8% to $50.19.
Meanwhile, Norway's Norsk Hydro ASA (NHYDY, NHY.OS) helped pull up the index, rising 2.6% to $47, after it said it struck a $4.9 billion deal Sunday to take over mining company Vale SA's (VALE, VALE5.BR) aluminum operations in Brazil. The aluminum producer said the move secures enough raw material to run its operations for decades. Vale's shares dropped 1.7% to $30.10.
The Latin-American index, which is heavily weighted toward material stocks, fell 0.9% to 382.22.
Among the gainers in the region, the board of Sao Paulo state waterworks Companhia de Saneamento Basico do Estado de Sao Paulo SA (SBS, SBSP3.BR) approved the company to issue up to 500 million Brazilian reals ($288 million) in nonconvertible debentures, the company said late Friday in a statement. Shares rose 4.8% to $41.23.
Brazilian petrochemicals firm Braskem SA (BAK, BRKM5.BR) raised $400 million in a 10-year bond deal Friday that priced at par and offered a yield of 7%, according to a person close to the transaction. Shares rose 3.8% to $14.79.
The Asian index climbed 0.4% to 131.14.
Shares of Silicon Motion Technology Corp. (SIMO) surged 17% to $6.38 after B. Riley upgraded its stock-investment rating on the Taiwan-based company to buy from hold, citing its projected revenue. The firm said second-quarter revenue guidance from the company, which makes semiconductor products, is buoyed by strength across most of its markets, including mobile storage where it is particularly taking share.
Melco Crown Entertainment Ltd.'s (MPEL) shares rose 4.2% to $4.96 after it began a global roadshow in Singapore on Monday. The planned sale of up to $600 million in global bonds will give the Macau casino owner flexibility in managing its debt, according to the company's chief financial officer and credit analysts.
The emerging-markets index slipped 0.1% to 313.70.
Shares of Brazilian state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, ended down 3.8% to $36.50 after the company said it would move forward with a planned share offer.
By Caitlin Nish, Dow Jones Newswires; 212-416-2076; .(JavaScript must be enabled to view this email address)