Asia tumbles on export fears

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell, sending the region's benchmark to its biggest first-quarter decline since 1992, on concerns that faltering US consumer spending will erode exports of cars, clothing and electronics.

Toyota Motor, which gets more than half its operating profit from North America, dropped the most in two months in Tokyo.

Infosys Technologies fell in Mumbai after J C Penney, the No. 3 US department-store chain, its cut its earnings forecast and a report showed that US consumer confidence slumped to a 16-year low. Mizuho Financial Group tumbled to the lowest in four years on speculation credit-market losses will spread.

The MSCI Asia Pacific Index dropped 1.6 per cent to 139.52 as of 5:48 pm in Tokyo, on course for its biggest one-day slump since March 17. All of the benchmark's 10 industry groups declined, led by a gauge that includes makers of cars and consumer electronics. Most Asian benchmarks retreated.

The measure has lost 12 per cent this year on concern a US housing slump is dragging Asia's biggest export destination into a recession. About $3.9 trillion in value has been erased from global stock markets this year to March 30, according to Bloomberg data.

Japan's Nikkei 225 Stock Average slipped 2.3 per cent to 12,525.54 after Marubeni said it will close a subsidiary because of sub-prime mortgage losses. It was the measure's steepest January-March decline since 1990.

EUROPE
European stock-index futures fell as concern deepened that losses in the credit markets will hurt economic and profit growth.

BNP Paribas and Fortis may decline after their US-traded securities dropped. UBS will probably slip as Merrill Lynch said the region's biggest bank by assets may have more writedowns.

Vodafone Group might drop after Morgan Stanley downgraded the stock. Goldman Sachs advised investors to sell shares of British Airways.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, fell 24 points, or 0.7 per cent, to 3,538 at 7:27 am in London.

US
US stock-index futures dropped, indicating the Standard & Poor's 500 Index may complete its worst quarterly slump in six years on fears of credit-market losses and an economic slowdown would curb earnings growth.

JPMorgan Chase, the third-largest US bank, and Bear Stearns fell in Germany. Merrill Lynch said on Monday UBS, Europe's biggest bank by assets, may have more writedowns.

Futures on the S&P 500 expiring in June retreated 6.7 points to 1,312.2 at 10:09 am in London. Dow Jones Industrial Average futures dropped 58 points to 12,178. Nasdaq-100 Index futures fell 7.25 points to 1,772.75.

The S&P 500 is on course for the worst quarter since 2002 as financial firms worldwide have posted more than $208 billion in losses related to the collapse of the U.S. subprime mortgage market.

US stocks declined on March 28 after J C Penney forecast weaker sales and concern grew that further writedowns may jeopardize banks' access to capital.