Asian stock rally ends

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell for the first time in four days on renewed concerns of economic slowdown in the US, the region's largest market for exports.

The Rio Tinto Group and Nippon Mining Holdings, Japan's largest copper producer, slipped after a report showed US manufacturing expanded in November at the slowest pace in 10 months, raising speculation that demand for raw-materials would wane. JFE Holdings led declines by steelmakers.

"It's difficult to be bullish at the moment with the US economy looking more like it's headed for a recession than a slowdown," said Toshio Konishi, who helps oversee $4.3 billion at Polar Capital Partners in Tokyo.

The MSCI Asia Pacific Index lost 0.2 per cent to 161.93 as of 7:08 pm in Tokyo, snapping a three-day, 3.6 per cent rally. Japan's Nikkei 225 Stock Average lost 1 per cent.

About half of Asia's key stock indexes fell. Mitsui OSK Lines led the fall of ship owners lower after Baltic Exchange Chairman Michael Drayton said commodity freight rates will decline.

The MSCI Asia Pacific Index has dropped 6.2 percent from its November 1 record amid speculation of rising losses tied to investments in US sub-prime mortgages will slow growth in the world's largest economy.

Federal Reserve Bank of San Francisco President Janet Yellen on Monday said financial conditions and consumer spending deteriorated more than she expected.

EUROPE
European stocks fell for a second day, led by technology companies, after Nokia said retail prices in the mobile-phone industry will decline.

Nokia, the world's largest maker of handsets, dropped the most in two weeks. Alcatel-Lucent and Ericsson also retreated. TomTom slid on plans to issue shares linked to financing the takeover of Tele Atlas.

The Dow Jones Stoxx 600 Index lost 0.8 per cent to 365.81 at 9:02 am in London. The Stoxx 50 decreased 0.8 per cent, and the Euro Stoxx 50, a measure for the euro region, slid 0.5 per cent.

US
US stock-index futures were also impacted by Nokia statement that average selling prices in the industry would fall.

Motorola, the second-largest mobile-phone maker, and Qualcomm retreated in Europe. Alcoa, the biggest aluminum maker, dropped with commodity prices on concern that slowing US economic growth may hurt demand.

Standard & Poor's 500 Index futures expiring in December retreated 6.70 points to 1,468.80 as of 10:16 am in London. Dow Jones Industrial Average futures lost 50 points to 13,299.

Nasdaq-100 Index futures slid 8.75 to 2,066.

Stocks fell for the first time in five days on Monday, led by financial companies, after Deutsche Bank AG said bond losses will crimp profits at brokerages and concern increased that economic growth will slow.