Asia stocks slip on oil

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell, led by BHP Billiton after metal and oil prices dropped on concerns that a slowdown in the US economy will erode demand for raw materials.

BHP, the world's largest mining company, declined the most in a week. Sinotruk, China's largest maker of heavy trucks, plunged 16 per cent on its first day of trading, the second stock to slump in a Hong Kong debut in less than a week.

The MSCI Asia Pacific Index dropped 0.7 per cent to 157 as of 7:41 pm in Tokyo, with eight of its 10 industry groups falling.

Japan's Nikkei 225 Stock Average lost 0.5 per cent to 15,154, and the broader Topix fell 0.2 per cent. Benchmarks declined in South Korea, China, India, Taiwan and Australia, and rose in Hong Kong. Singapore was little changed.

Concerns that the US economy is headed into a recession have helped drag the MSCI Asia Pacific index down by 8.8 per cent from its November 1 record.

A gauge of US consumer confidence released on Tuesday fell more than expected this month, while a measure of home prices dropped the most in at least two decades.

An MSCI index of Asian energy stocks fell 0.9 per cent after crude oil futures in New York slumped 3.4 per cent, the biggest decline since November 13.

EUROPE
European stocks advanced for the first time this week after earnings from Compass Group and Anglo Irish Bank beat analyst estimates and brokerages recommended buying shares in UBS AG and British Airways.

The Dow Jones Stoxx 600 Index added 0.2 per cent to 354.84 as of 9:05 am in London. The Stoxx 50 also increased 0.2 per cent, as did the Euro Stoxx 50, a measure for the euro region.

National benchmarks advanced in 11 of the 18 western European markets that were open. The UK's FTSE 100 and France's CAC were little changed, while Germany's DAX rose 0.3 per cent.

US
Stock-index futures fell on speculation reports on Wednesday will show the worst housing slump in 16 years is deepening and exerting a bigger drag on the world's largest economy.

Wells Fargo shares sank after the second-biggest US mortgage lender said it will take a $1.4 billion pre-tax charge tied to increased losses on home equity loans. Freddie Mac retreated after announcing measures to shore up capital depleted by record mortgage defaults and foreclosures.

Standard & Poor's 500 Index futures, expiring in December, declined 3.40 points to 1,422.70 as of 10:02 am in London. Dow Jones Industrial Average futures decreased 25 points to 12,930. Nasdaq-100 Index futures dropped 4.5 points to 2,028.

Stocks climbed on Tuesday after Citigroup received a $7.5 billion cash infusion.