Asian stocks fall

GLOBAL MARKETS

Asian stocks fell, led by Japanese exporters, after the dollar declined to a six-week-low against the yen amid concerns that the US economy is slowing.

Honda Motor Company, which last year made the bulk of its sales in North America, slid the most in six weeks. Sony Corporation, the world's biggest game-console maker, had its biggest slump in almost a month.

"The yen's weakening trend has reached its end,'' said Hiroshi Chano, who helps manage $7.3 billion at Yasuda Asset Management Company in Tokyo. "If the currency takes another big step, exporters are going to suffer.''

Stocks in the region also slid on concerns that a US housing slump will dent demand in the biggest market for Asian products. Samsung Electronics Company dropped for the fourth day in five.

Europe

European insurance stocks rose, led by Friends Provident and Resolution, after the companies said they are in talks for a merger that would create the UK's fifth-biggest insurer.

Friends Provident jumped the most in more than two months, while Resolution headed for its biggest gain since March. Nestle dropped after the Wall Street Journal reported the foodmaker is slimming down its UK candy product range because nearly 40 per cent of its chocolate products made a loss or barely made a profit.

Europe's Dow Jones Stoxx 600 Index added less than 0.1 per cent to 392.86 in London. Mergers and acquisitions including a European company have surged to $1.53 trillion this year, according to data compiled by Bloomberg. That compares with $873 billion in the same period a year earlier.

"M&A is going to be supportive and even though the picture may appear murky for equities, light continues to shine,'' said Henk Potts, who helps oversee $45 billion at Barclays Stockbrokers in London.

US

US stock-index futures were little changed before companies including Merck & Company, the third-largest US drugmaker, and American Express Company report earnings.

Shares of Merck rose in Germany, while American Express didn't trade in Europe. Tellabs surged after The street.com said Nokia Siemens Networks may bid for the maker of equipment for phone and Internet systems. Pharmaceuticals company Schering-Plough Corporation declined.

US stocks closed July 20 with their first weekly drop in a month, led by financial companies, on concerns that losses from subprime loans will grow and as Google and Intel reported profits that missed analyst estimates. At least 11 Standard & Poor's 500 Index companies report earnings today.

"The quality of earnings is not bad, but not astonishing either,'' said Johan Van Der Biest, who helps oversee the equivalent of $83 billion at Dexia Asset Management in Brussels. "We will see more misses. Investors are waiting for more indications on the fallout from the trouble in the subprime market.''