ADR Report-ADRs slip on financials, basic materials

By Rodrigo Campos

NEW YORK, Aug 4 (Reuters) - Overseas shares traded in the United States declined on Monday as global fears of inflation, a slide in metal prices and a fall in profit reported by Europe's biggest bank prompted investors to sell stocks in the financial and basic materials sectors.

The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR was down 1.0 percent while the 30-share Dow Jones industrial average .DJI was little changed, with a dip of just 0.03 percent at midday.

HSBC Holdings' ADRs(HBC.N) fell 1.8 percent to $81.51 on the New York Stock Exchange as the London-based banking company posted a 28 percent drop in profit. For details see [ID:nL487970]

Earlier on Monday, data showed euro-zone producer prices rose at a record annual rate of 8.0 percent in June on soaring energy costs, the highest figure since measurements started in 1991. [ID:nL490960]

The New York-traded shares of British metals company Rio Tinto plc (RTP.N) slid 4.9 percent to $375.05 and those of Aluminum China (ACH.N) fell 3.8 percent to $23.26, both on the NYSE.

The Bank of New York Mellon's index of leading Asian ADRs .BKAS tumbled 2.5 percent. In Asia, shares ended lower in most major markets, including Seoul, Taiwan, Hong Kong and Tokyo. Shanghai's main stock index .SSEC slid 2.1 percent, pulled lower by steel companies and a grenade attack in the northwestern region of Xinjiang, as companies based there fell as a group. [ID:nSHA256193]

The ADRs of Japanese automakers fell, with Toyota (TM.N) down 3 percent at $82.54, and Honda (HMC.N) off 5 percent at $30.34, both on the NYSE.

The Bank of New York Mellon's index of leading Latin American ADRs .BKLA lost 3.3 percent. In Latin America, major benchmarks fell, with a 3 percent decline in Brazil's Bovespa .BVSP index of major Sao Paulo-traded stocks.