Asian stocks decline

GLOBAL MARKETS/ STOCK REPORT

Honda Motor, which gets about half of its sales from North America, dropped after brokerages said US vehicle sales may plunge. Samsung Electronics, Asia's largest maker of chips and mobile phones, and Sony slumped as the dollar's retreat against the won and the yen threatened to erode the value of US sales. National Australia Bank led financial stocks lower on speculation credit-market losses will widen.

The MSCI Asia Pacific Index lost 2.1 per cent to 141.35 as of 7:10 pm in Tokyo, halting a four-day, 3 per cent rally. Ten stocks fell for each that rose among the benchmark's 991 members.

Japan's Nikkei 225 Stock Average dropped 2.2 per cent to 14,130.17, its largest loss since May 26. China's CSI 300 Index slumped 7.3 per cent, resuming a decline that's wiped out $1.2 trillion of market value. All other markets in Asia declined, except for Indonesia.

Europe
Most stocks fell in Europe on speculation that financial firms will post more losses, while slowing sales and rising costs may cut earnings at automakers, airlines and paper companies. US index futures were little changed.

The MSCI World Index lost 0.3 per cent to 1,452.63 at 10:48 am in London as eight of the 10 industry groups fell. Futures on the Standard & Poor's 500 Index added less than 0.1 per cent.

The MSCI World has dropped 8.6 per cent this year as record oil prices, rising inflation and credit-related losses approaching $400 billion threaten to push the US into recession.

The Dow Jones Stoxx 600 Index added 0.2 per cent, even as five stocks fell for every four that advanced, as gains by oil producers and retailers offset declines by banks and airlines.

US
US stocks fell, sending the Dow Jones Industrial Average to a three-month low, as FedEx's results and Fifth Third Bancorp's dividend cut reinforced concern bank losses and record oil will prolong the slump in profits.

The S&P 500 dropped 13.12 points, or 1 per cent, to 1,337.81. The Dow Jones Industrial Average decreased 131.24, or 1.1 per cent, to 12,029.06, its lowest since March 17. The Nasdaq Composite Index lost 28.02, or 1.1 per cent, to 2,429.71. Three stocks fell for each that rose on the New York Stock Exchange.