BHP Billiton, the world's biggest mining company, dropped after crude oil prices retreated to a one-month low as consumers bought less gasoline in the US and Malaysia and India reduced fuel subsidies. Mitsubishi UFJ Financial Group retreated after Lehman Brothers Holdings lowered its view on Japanese banks and Moody's Investors Service said it may cut the credit ratings of the world's largest bond insurers.
The MSCI Asia Pacific Index lost 1 per cent to 148.83 as of 7:18 pm in Tokyo. A measure tracking energy companies fell the most among the benchmark index's 10 industry groups.
MSCI's Asian index has dropped 14 per cent from its record in November on concern higher fuel costs and $386 billion in credit losses will curb earnings.
Japan's Nikkei 225 Stock Average retreated 0.7 per cent to 14,341.32. Malaysia's Kuala Lumpur Composite Index dropped 2.4 per cent, the region's largest decline, on concern the government's decision to raise fuel and power prices will stoke inflation and crimp economic growth. Most other benchmark indexes in Asia fell.
Sinopec Shanghai Petrochemical led a surge in Hong Kong on speculation its parent will offer to buy shares that it doesn't already own.
Europe
European stocks rose as investors speculated food and drug companies will outperform in an economic slowdown and Citigroup recommended shares of Royal Bank of Scotland Group.
The Dow Jones Stoxx 600 Index added 0.3 per cent to 318.13 as of 1:38 pm in London. The index has fallen 13 per cent this year on concern rising inflation and credit-related losses approaching $400 billion worldwide will slow economic growth.
Futures on the Standard & Poor's 500 Index rose 0.7 per cent.
Stocks extended gains after a report showed US jobless claims unexpectedly fell last week.
National indexes advanced in all 17 western European markets that were open except Norway. The UK's FTSE 100 gained 0.2 per cent, and France's CAC 40 rose 0.4 per cent. Germany's climbed 0.6 per cent.
US
US stocks fell, sending bank shares to their lowest level in eight years, as Federal Reserve Chairman Ben S Bernanke's warning that inflation is too high spurred speculation policy makers will raise interest rates.
The S&P 500 lost 0.45 point, or less than 0.1 per cent, to 1,377.2. The Dow Jones Industrial Average declined 12.37, or 0.1 per cent, to 12,390.48.
The Nasdaq Composite added 22.66, or 0.9 per cent, to 2,503.14. About the same number of stocks rose as fell on the New York Stock Exchange.
The S&P 500 swung between gains and losses 19 times in the first hour of trading as a rally in technology shares countered declines in banks and energy companies.
