Asian down on loss fears

GLOBAL MARKETS/ STOCK REPORT

Asian stocks retreated from a five-week high, led by technology companies and banks, on concern weakening global economic growth and mounting credit losses will erode earnings.

The MSCI Asia Pacific Index fell 1.1 per cent to 144.71 as of 5:07 p.m. in Tokyo, after yesterday climbing to the highest since February 29.

Finance and technology shares accounted for half the drop. The regional gauge is down 8.3 per cent this year amid concern the US economy will fall into a recession.

Japan's Nikkei 225 Stock Average slumped 1.5 per cent to 13,250.43, its biggest loss in a week. Aeon Co, Japan's biggest supermarket operator, dropped after forecasting lower profit. Most indexes in Asia retreated.

US stocks advanced yesterday for a third straight day amid speculation Washington Mutual Inc., the nation's largest savings and loan, will get a $5 billion investment. The Standard & Poor's 500 Index added 0.1 per cent yesterday. Futures on the benchmark were down 0.2 percent recently.

Europe
European stock-index futures dropped, following declines in Asia, after US chipmaker Advanced Micro Devices Inc. said first-quarter revenue missed its forecasts.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, decreased 20, or 0.5 per cent, to 3,728 at 7:25 a.m. in London. The UK's FTSE 100 Index may fall 35, according to CMC Markets.

The Stoxx 600 has climbed 11 per cent from a two-year low on March 17 as interest-rate cuts and measures by the US Federal Reserve supported banks suffering from $232 billion in losses and asset writedowns.

Asian stocks fell on Monday from a five-week high, led by technology companies. Shares in the US rose yesterday as speculation Washington Mutual Inc will get a $5 billion investment offset concern that slowing economic growth will hurt earnings.

US
US stock-index futures declined after first-quarter earnings from Alcoa Inc. missed analysts' estimates and Advanced Micro Devices Inc. said revenue fell short of its forecast.

Standard & Poor's 500 Index futures expiring in June lost 6.8, or 0.5 per cent, to 1,365.4 as of 10:52 a.m. in London. Dow Jones Industrial Average futures decreased 54 to 12,548 and Nasdaq 100 Index futures declined 8 to 1,857.75.

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 analyst estimates compiled by Bloomberg. The index has lost 6.5 per cent this year as concern mounted a housing slump will slow economic growth.