Winning streak ends

GLOBAL MARKETS

Asian stocks fell for the first time in four days, led by Posco and China Mobile, on speculation recent gains have outpaced the potential for earnings growth.

Posco, Asian's No 3 steelmaker, dropped for the first day in seven. China Mobile, the world's biggest mobile-phone operator by users, declined. It rose 31 per cent in the last two weeks of August as stocks rebounded from a global rout triggered by US subprime-mortgage losses.

"People are shell-shocked after the last couple of months," said Philip Goldsmith, managing director of New Star Asset Management Services, which manages almost $50 billion in assets. "We think equity markets are in for more turmoil."

Mitsui Fudosan Co, Japan's biggest property developer by sales, dropped after capital spending among Japanese real-estate companies declined. Woolworths and David Jones paced gains in Australia after the government reported second-quarter economic growth that was double the pace forecast by economists.

US

US stock-index futures declined after Merrill Lynch & Co cut its earnings estimates for regional banks, citing risks to economic growth.

Bank of America Corp, the country's second-biggest bank, and Wells Fargo & Co, the second-largest home lender, retreated in Europe. Shares of Lehman Brothers Holdings Inc and Citigroup Inc also dropped.

Standard & Poor's 500 Index futures expiring in September fell 1.9 to 1,474.8 as of 10:56 a.m. in London. Dow Jones Industrial Average futures lost 6 to 13,358. Nasdaq-100 Index futures decreased 0.5 to 1,994.25.

Europe

European stocks rebounded, led by Deutsche Bank AG after the chief executive of Germany's biggest bank said there are signs that markets are beginning to stabilize after "turbulent" conditions in August. UBS AG and Credit Suisse Group advanced.

The Dow Jones Stoxx 600 Index was little changed at 377.08 at 10:48 a.m. in London, after declining as much as 0.7 in earlier trading. The Stoxx 50 rose 0.1 per cent, while the Euro Stoxx 50, a measure for the euro region, was down less than 0.1 per cent after slipping as much as 0.8 per cent earlier.

Deutsche Bank added ¤ 2.80, or 3.1 per cent, to 94.32 euros. "I am optimistic about the environment globally for financial institutions," Josef Ackermann said today in a statement distributed by the DGAP wire.