Asia down for second day

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell for a second day, led by financial companies, on speculation widening credit-market losses will sap earnings.

Commonwealth Bank of Australia, the nation's largest bank by market value, and Westpac Banking Corp. slumped in Sydney after UBS AG said the companies may set aside more money to cover bad debt.

Toray Industries Inc, a synthetic fiber maker, tumbled in Tokyo after the Nikkei newspaper reported the company may say profit declined. BHP Billiton Ltd. climbed to its highest this year on speculation China will buy a stake.

The MSCI Asia Pacific Index lost 1.1 per cent to 142.73 as of 4:28 p.m. in Tokyo. All 10 of its industry groups fell, with a measure of finance stocks contributing 45 per cent of the decline. The regional gauge is down 9.6 per cent this year amid concern losses related to US sub-prime mortgages will widen.

Japan's Nikkei 225 Stock Average fell 1.1 per cent. Obayashi Corp. led building companies lower after reporting profit that fell short of analyst estimates, while Tokyu Land Corp slumped after cut its rating. Most stock benchmarks in Asia retreated, led by a 5.2 per cent tumble in China's CSI 300 Index.

EUROPE
European stock-index futures dropped on concern a US recession will curb earnings growth after some Federal Reserve officials warned of a prolonged downturn.

Allianz SE and UBS AG may follow their US-traded securities lower. TNT NV might decline after United Parcel Service Inc, the world's largest package-delivery company, reduced its first- quarter earnings forecast because of slowing domestic shipments.

HBOS Plc may decrease after Credit Suisse Group recommended selling shares of Britain's biggest mortgage lender.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, decreased 15, or 0.4 per cent, to 3,709 at 7:33 a.m. in London. The UK's FTSE 100 Index may fall 8, according to CMC Markets.

US stocks fell the most in seven days yesterday, while Asian shares declined on Wednesday. Earnings for companies in the Stoxx 600 will rise 0.6 per cent this year, down from 11 per cent predicted at the end of last year, Bloomberg data show.

US
US stock-index futures declined after United Parcel Service Inc lowered its first-quarter profit forecast, adding to evidence that slowing economic growth will curb earnings.

UPS may retreat as the world's largest package-delivery company cited weaker domestic sales and surging fuel costs. Exxon Mobil Corp, the biggest oil company, and Barrick Gold Corp, the largest gold producer, fell in Europe.

Standard & Poor's 500 Index futures expiring in June sank 6.9, or 0.5 per cent, to 1,364.1 as of 10 a.m. in London. Dow Jones Industrial Average futures slipped 48 to 12,562 and Nasdaq 100 Index futures lost 4 to 1,850.75.

Earnings at S&P 500 companies probably fell an average of 11.3 per cent from a year earlier in the first quarter, according to analysts' estimates compiled by Bloomberg.

Economic growth will come to a halt in the first six months of 2008 as consumer spending cools, a Bloomberg News survey showed.

The world's largest economy will not expand at all from January through June, according to the median estimate of 62 economists surveyed from April 2 to April 8. A majority now projects the US is, or will soon be, in a recession.