Asian stocks head for 3rd weekly drop

Asian stocks fell, set for a third weekly decline, as lower oil and gold prices dragged down commodity shares and Europe joined Japan in reporting an economic contraction.

The MSCI Asia Pacific Index lost 0.6 per cent to 124.81 as of 7:27 p.m. in Tokyo, its lowest since August 7, 2006. The measure declined 1.8 per cent this week, taking this year’s drop to 21 per cent as soaring fuel and food prices threatened consumer spending and corporate profits, while writedowns and credit losses at financial companies topped $500 billion.

Japan’s Nikkei 225 Stock Average gained 0.5 per cent to 13,019.41. Most Asian markets open for trading fell, with South Korea and India shut for holidays. US stocks rose for the first time in three days yesterday. The Dow Jones industrial average rose 63 points at 11,679.57 at the time of going to the Press.