Asian stocks decline

STOCK REPORT

Asian stocks dropped for a second day, led by companies that sell to the U.S. after consumer confidence and home prices declined in the region's largest export market.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.5 per cent to 144.55 as of 7:52 pm in Tokyo, following a 0.6 per cent drop yesterday.

In Japan, the Nikkei 225 Stock Average fell 0.6 percent, erasing gains of as much as 0.5 percent, while the broader Topix index slid 0.7 percent.

Tokyo Electric Power led declines in utilities after a document showed it will delay the completion of two nuclear reactors at a plant where it had an accident. All other markets fell, apart from in China. India's Sensitive Index slid 1.8 per cent, the most in the region.

Toyota, Japan's largest automaker, fell 1.4 per cent to 7,620 yen. Samsung Electronics, which accounted for about 16 per cent of South Korean exports last year, slid 1.4 per cent to 572,000 won.

US
US stock-index futures fell after crude oil climbed for a seventh day and orders for durable goods rebounded less than economists expected.

Boeing Co and Caterpillar Inc. declined as oil futures rose on concern a dispute over Iran's capture of British servicemen will escalate, disrupting supplies from the Middle East. Homebuilders retreated after the FBI said it's investigating Beazer Homes USA Inc. for potential fraud.

Today's durable-goods orders report reflects businesses' reluctance to invest in new machinery and equipment until they reduce their inventories. Testimony from Federal Reserve Chairman Ben S Bernanke may also provide investors with clues on the outlook for economic growth and interest rates.

Europe
European stocks dropped for a third day on speculation the highest oil prices in six months and slowing US economic growth will hurt earnings. Air France-KLM Group, the region's largest airline, fell to a one-week low as crude advanced for the seventh day.

Rio Tinto Group and SAP AG led declines by mining and technology companies, which rely on sales in the US, the world's largest economy. Hennes & Mauritz AB slid the most in two weeks after the retailer reported revenue that was less than analysts estimated.

"A higher oil price could weigh on the economy and corporate profits, especially in the airline'' industry, said Peter Braendle, who helps manage the equivalent of $46 billion at Zurich-based Swisscanto Asset Management.

The Dow Jones Stoxx 600 Index lost 0.6 per cent to 370.43 at 1:32 pm in London as all 18 industry groups fell except for energy-related stocks. The Stoxx 50 declined 0.5 per cent. The

Euro Stoxx 50, a measure for the 13 nations sharing the euro, decreased 0.7 per cent.

Indexes extended losses after a government report showed orders for US-made durable goods rose less than forecast in February, limited by lower demand for metals, machinery and appliances. Orders excluding transportation unexpectedly fell.

The Stoxx 600 has dropped 1.6 percent this week after reports showed U.S. home sales unexpectedly declined and consumer confidence slid more than economists forecast. The data deepened concern that a housing crisis will stifle growth in Europe's largest export market.

Stocks in the US yesterday fell the most in two weeks, while Asian markets declined today for a second day.

National benchmarks dropped in 17 of the 18 markets in western Europe. France's CAC 40 sank 0.7 percent as did Germany's DAX. The U.K.'s FTSE 100 slipped 0.2 per cent.

Shares of Air France lost 1.7 per cent to 33.11 euros. British Airways Plc, Europe's third-biggest airline, retreated 1.2 per cent to 491 pence. Oil accounts for 30 percent of airlines' costs, according to Credit Suisse Group

Oil rose in New York on concern a dispute over Iran's detention of British servicemen could escalate, disrupting supplies from the Middle East. Crude for May delivery gained as much as $2.03, or 3.2 per cent, to $64.96 a barrel in electronic after-hours trading. It climbed past $68 yesterday, the highest intraday price since September 6.

"If tensions with Iran escalate further, profit margins of airlines, gas companies and chemical makers dependant on oil would be depressed,'' said Heino Ruland, head of research at Wolfgang Steubing AG in Frankfurt.