Asia depressed

GLOBAL MARKETS

Asian stocks fell from a record, led by Japanese automakers, after Toyota Motor Corp. predicted its smallest profit increase since net income declined in 1999.

Toyota, which last month posted its first drop in US sales in two years, slid to a five-month low. Consumer-goods companies including carmakers were the biggest drag on the Morgan Stanley Capital International Asia-Pacific Index, even as indexes extended highs in South Korea, China, Australia, New Zealand and Indonesia.

Rio Tinto Group dropped from a record after the company said yesterday it wasn't aware of any takeover approach from bigger rival BHP Billiton Posco jumped to a high as Morgan Stanley said it favoured South Korean steelmakers over Chinese ones. The MSCI index slid 0.4 per cent to 149.51 at 7:01pm in Tokyo, after earlier gaining as much as 0.2 percent. In Japan, the Nikkei 225 Stock Average lost 0.1 per cent, while the broader Topix index dropped 0.5 per cent. China's stocks rose to a fourth straight record on signs that more of the nation's savings will flow into the market. Benchmarks gained elsewhere, except in Hong Kong, India, Pakistan, Sri Lanka and the Philippines.

US

US stock-index futures dropped on concern that gains that pushed the Standard & Poor's 500 Index to within 1 per cent of a record yesterday don't reflect the outlook for earnings growth. Whole Foods Market slipped in Europe after the largest US natural-foods grocer reported a drop in second-quarter profit. S&P 500 futures expiring in June declined 2.6 to 1513 as of 11:58am in London. Dow Jones Industrial Average futures fell 20 to 13,364. Nasdaq 100 Index futures decreased 3.5 to 1908.75. The Federal Reserve yesterday held its main interest rate at 5.25 per cent, the level it has been at since June.

Europe

European stocks fell, led by mining shares after Rio Tinto Group damped speculation of takeovers in the industry and copper declined for a third day. Rio Tinto dropped from a record high, leading the Dow Jones Basic Resources Index to its biggest slide in more than three weeks.

A wave of takeovers has helped lift the Stoxx 600 6.6 per cent this year. Deals in the region have totalled $1.06 trillion in 2007, according to data compiled by Bloomberg. They reached a record $1.6 trillion last year. The Stoxx 600 lost 0.4 percent to 389.21 at 12:03pm in London. The Stoxx 50 slid 0.5 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, decreased 0.3 per cent.