Asia grapples with US blues

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell for a third day, led by Samsung Electronics Co and BHP Billiton, as a slowdown in US hiring reinforced concern the world's biggest economy will sink into recession.

Samsung, South Korea's largest exporter, dropped the most in six weeks on speculation US spending will slow and after CJ Investment & Securities cut its forecast for the company's earnings.

BHP led miners lower after metals prices retreated. Singapore Airlines, bidding for a stake in a Chinese carrier, fell to its lowest in 10 months after a rival pledged to make a higher offer.

"The view is strengthening that a US recession is on the cards," said Jason Teh, who helps manage the equivalent of about $5.3 billion at Investors Mutual in Sydney. "When things slow there it spills out to the rest of the world."

The MSCI Asia Pacific Index fell 2.2 per cent to 152.63 as of 7:14 pm in Tokyo, bringing this year's decline to 3.3 per cent. About five stocks retreated for each that gained on the benchmark, which is headed for its biggest one-day drop since December 17.

Japan's Nikkei 225 Stock Average sank 1.3 per cent to 14,500.55, extending a plunge of 4 per cent on January 4, its first trading day of the year.

The broader Topix index dropped 1.4 per cent to close below 1,400 for the first time since October 2005. Japanese exporters also declined on Monday after the yen climbed against the dollar. Benchmarks fell in other markets open for trading, except China, India, Malaysia and Indonesia. EUROPE
Most European stocks declined, led by financial companies and retailers, on concern credit-market losses and slowing economic growth will curb earnings.

Credit Suisse Group retreated for a fourth day after Sonntag reported the Swiss bank may announce more writedowns, while Deutsche Bank AG slid as Credit Suisse recommended selling the shares. Marks & Spencer Group Plc slumped after The Sunday Times said the UK retailer may report its worst Christmas trading figures for two years.

US
US stock-index futures advanced on speculation the Federal Reserve will cut interest rates to prevent the world's largest economy from slowing further. Dow Chemical Co, the biggest US chemical maker, Coca-Cola and McDonald's Corp led a rally by companies that get less than half their revenue from the US.

General Motors gained as Chief Executive Officer Rick Wagoner said the world's largest automaker will probably get 75 per cent of car and truck sales from outside the US within a decade.

Standard and Poor's 500 Index futures expiring in March climbed 6.3 points to 1,429.20 as of 10 am in London. Dow Jones Industrial Average futures increased 46 points to 12,933. Nasdaq-100 Index futures rose 8 points to 1,993.