Asia down on dull reports

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell, extending the fourth quarter's decline, after government reports in South Korea and Singapore showed the two countries' economies are slowing.

Samsung Electronics Co dropped after South Korea's export growth weakened. DBS Group Holdings, Singapore's largest bank, retreated after the economy shrank for the first time in 18 quarters.

"The negative impact of outside risks on Asian economies will be stronger this year," said Kwon Hyeuk Boo, who helps manage the equivalent of $3.2 billion at Daishin Investment Trust Management Co in Seoul. The stock markets' "moves reflect the surrounding environment".

The MSCI Asia Pacific excluding Japan Index lost 0.7 per cent to 526 as of 6:22 pm in Hong Kong, its biggest decline since December 17.

Twice as many stocks dropped as rose on the benchmark, which extended its fourth-quarter slide of 0.9 per cent. Japan and New Zealand were shut on Wednesday.

The MSCI benchmark, which was little changed yesterday, jumped 33 per cent in 2007, while a regional index that includes Japanese shares advanced 12 per cent, the smallest annual gain since 2002.

South Korea's Kospi index slid 2.3 per cent, a two-week low. Singapore's Straits Times Index declined 0.6 per cent. Regional benchmarks extended losses after Sri Lankan officials said a bomb targeting an army bus in the capital Colombo killed at least four people.

EUROPE
European stocks were little changed on the first trading day of 2008, following their worst annual performance in five years. Gains in energy producers were offset by a drop in technology shares on concern an economic slowdown will curb earnings.

Total SA, the region's biggest refiner, and BG Group advanced as oil topped $96 a barrel. Nokia Oyj, the world's largest mobile-phone maker, fell before a report on manufacturing that may give more evidence the US economy is cooling.

The Dow Jones Stoxx 600 Index added less than 0.1 per cent to 364.75 at 10:46 am in London. The Stoxx 50 also gained less than 0.1 per cent, while the Euro Stoxx 50, a measure for the euro region, decreased less than 0.1 per cent.

US
US stock-index futures were little changed before a report that may show manufacturing in the world's biggest economy expanded in December at the slowest pace in 11 months.

Intel and Advanced Micro Devices fell in Europe after Bank of America Corp cut its recommendations on eight US semiconductor makers. Barrick Gold, the world's largest gold producer, gained as the metal's price advanced.

Dow Jones Industrial Average futures shed 2 points to 13,326 as of 10:05 am in London. Trading for Standard & Poor's 500 Index and Nasdaq-100 Index futures starts at 11 am in London on Wednesday, following the New Year holiday, said Jeremy Hughes, a spokesman for CME Group, the world's largest futures exchange.