Asian retreat continues

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell for a fourth day on concern record commodity prices and credit-market losses will erode earnings.

China Petroleum & Chemical Corp. dropped the most in a month in Hong Kong as crude oil traded above $102 a barrel, raising refining costs. ICICI Bank Ltd. plunged to a six-month low in Mumbai after the government said the bank had $264 million of credit-related losses.

Sekisui House Ltd., Japan's second-largest homebuilder, dragged down the country's real-estate stocks after saying surging materials expenses will cut earnings.

The MSCI Asia Pacific Index fell 0.5 per cent to 141.93 as of 7.45 pm in Tokyo, after earlier gaining 0.4 per cent. The gauge tumbled 4.6 per cent in the previous three days, and a four-day retreat will be its longest losing streak since a seven-day slide through December 20.

Most Asian benchmarks declined. Japan's Nikkei 225 Stock Average was little changed at 12,992.28 after swinging between a gain of 0.9 per cent and a loss of 0.8 per cent, while the broader Topix fell 0.4 per cent.

Europe
Stocks in Europe retreated as Intel Corp cut its profit forecast and investors speculated that surging commodity costs will curb earnings growth. Europe's Stoxx 600 lost 1 per cent. France's CAC sank 1.2 per cent, and the UK's FTSE 100 slipped 1.1 per cent.

Germany's DAX retreated 1.3 per cent. STMicroelectronics, Europe's largest semiconductor maker, fell 2.6 per cent to 7.56 euros. Infineon Technologies, the second-biggest, dropped 2.1 per cent to 5.23 euros.

Intel, the world's largest chipmaker, said first-quarter gross margin, the percentage of sales remaining after subtracting the cost of production, will be about 54 per cent. That's down from a January prediction of about 56 per cent. Intel lost 70 cents to $19.31 in Germany. Daimler AG declined 2.4 percent to 54.26 euros.

US
US stock-index futures fell after Intel Corp lowered its profitability forecast and Barnes & Noble Inc. projected earnings that trailed analysts' estimates. Intel dropped in Germany as the world's largest chipmaker cited a glut in flash-memory chips.

Apple Inc., the maker of iPod media players, and EMC Corp. retreated. Intel's forecast also dragged down European technology stocks, helping send the Dow Jones Stoxx 600 Index to a fifth day of declines. Shares in Asia slumped for a fourth day.

Standard & Poor's 500 Index futures expiring this month decreased 12.2 to 1,319.70 as of 11.44 am in London. Dow Jones Industrial Average futures lost 95 to 12,157 and Nasdaq 100 Index futures fell 15.75 to 1,721.

"Intel is an indicator,'' said Franck Hennin, who helps oversee $6.1 billion at Richelieu Finance in Paris. "We have to survey technology stocks on Tuesday. This week's economic statistics may answer 'yes' or 'no' as to whether we're facing a recession and just how long it can last.'' Economic reports scheduled for this week include factory orders tomorrow and employment data on March 7.

Most U.S. stocks gained yesterday as record oil and gold prices spurred a rally in commodity producers, outweighing declines in technology and financial shares. The S&P 500 swung between gains and losses as a smaller-than-forecast drop in manufacturing offset a decline in construction spending.

Federal Reserve Chairman Ben S Bernanke speaks on Tuesday at the Independent Community Bankers of America's National Convention and Techworld, in Orlando, Florida. Fed Board Vice Chairman Donald Kohn and other regulators testify before the Senate Banking Committee on conditions in the banking system.