Mizuho Financial Group, Japan's third-largest publicly traded bank, and ICICI Bank fell after US regulators told investment banks to disclose capital and liquidity levels.
Tokyo Electric Power, Asia's No. 1 utility, dropped the most in a month after crude traded at $123.71. Samsung Electronics and Honda Motor led exporters lower after reports showed US home sales fell and consumer debt rose.
The MSCI Asia Pacific Index lost 0.7 per cent to 150.41 as at 7:14 p.m. in Tokyo, with about two stocks retreating for each that gained. Financial shares were the biggest drag among the benchmark's 10 industry groups. Most Asian benchmarks retreated.
Japan's Nikkei 225 Stock Average slumped 1.1 per cent to 13,943.26.
Europe
Stocks dropped in Europe after Munich Re, InBev NV and UniCredit SpA reported profit that missed analysts' estimates and near record oil prices dimmed prospects for airlines' earnings.
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The MSCI World Index lost 0.2 per cent to 1,519.60 at 10:41 am in London. The index has fallen 9.7 per cent from a record on October 31 on concern $319 billion in credit losses by the world's largest banks will slow the global economy.
Futures on the Standard & Poor's 500 Index rose 0.3 per cent. Europe's Dow Jones Stoxx 600 Index declined 0.2 per cent.
US
US stocks declined the most in a month, led by financial shares, on concern new disclosure requirements for investment banks will limit their profits.
The S&P 500 slumped 25.69 points, or 1.8 per cent, to 1,392.57. The Dow Jones Industrial Average slid 206.48, or 1.6 per cent, to 12,814.35. The Nasdaq Composite Index decreased 44.82, or 1.8 per cent, to 2,438.49.
The Russell 2000 Index, a benchmark for companies with a median market value 95 per cent smaller than the S&P 500's, dropped 1.9 per cent to 716.21. The Dow Jones Wilshire 5000 Index, the broadest measure of US shares, fell 1.7 per cent to 14,066.66.