Mitsubishi UFJ Financial Group dropped the most in two months in Tokyo after forecasting profit will be little changed this year. Macquarie Group slumped in Sydney after Morgan PetroChina climbed on speculation it will be allowed to raise prices.
The MSCI Asia Pacific Index fell 1.1 per cent to 151.86 as of 6:11 p.m. in Tokyo, the most since May 9. The measure extended yesterday's 0.6 per cent slump after a six-day, 3.7 per cent climb.
Most Asian benchmarks declined, led by Japan's Nikkei 225 Stock Average losing 1.7 per cent to 13,926.30. China's CSI 300 Index and Hong Kong's Hang Seng Index erased earlier losses to advance 2 per cent and 1.2 per cent, respectively.
Europe
European stocks climbed as record oil prices buoyed energy shares and business confidence in Germany unexpectedly increased. US index futures advanced, and shares in Asia retreated.
Royal Dutch Shell Plc and BP Plc rallied the most this month in London after oil jumped to $129.75 a barrel.
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The Dow Jones Stoxx 600 Index added 0.2 per cent to 326.66 at 10:55 a.m. in London, rebounding from its biggest decline in two months. Futures on the Standard & Poor's 500 Index increased 0.2 per cent. The MSCI Asia Pacific Index decreased 1.1 per cent.
National benchmark indexes rose in 14 of the 17 western European markets that were open. The U.K.'s FTSE 100 climbed 0.9 per cent. France's CAC 40 added 0.4 per cent, and Germany's DAX gained 0.3 per cent. US
US stocks fell, dragging down the Standard & Poor's 500 Index from a four-month high, as analysts forecast more credit losses and faster inflation and as record oil prices threatened to reduce profitability.
American International Group Inc., the world's largest insurer, slid to the lowest level since 1998 after announcing plans to raise more capital than originally expected. Home Depot Inc. had its worst tumble in nine months after profit slumped 66 percent.
The S&P 500 lost 13.23 points, or 0.9 per cent, 1,413.4, its biggest drop since May 7. More than two stocks retreated for each that rose on the NYSE.