Qantas Airways, Australia's largest carrier, and Korean Airlines declined. China Cosco Holdings led bulk- shipping companies lower after Credit Suisse Group cut its rating. Woodside Petroleum climbed in Sydney and Nippon Oil Corporation gained in Tokyo on speculation crude prices will boost profits.
Asian governments are split on how to cope with energy costs, with some subsidizing expenses for consumers to contain inflation and others raising prices to lower the effect on their budgets.
The MSCI Asia Pacific Index fell 0.2 per cent to 151.77 as of 5:13 p.m. in Tokyo, paring a 1.1 per cent slump earlier. About three stocks dropped for every two that gained, and five of 10 industry groups declined.
Japan's Nikkei 225 Stock Average rose 0.4 per cent to 13,978.46, reversing an earlier loss of as much as 1.9 per cent. Benchmarks elsewhere in Asia declined, apart from Australia and Sri Lanka. Futures for the Standard & Poor's 500 Index in the U.S. rose 0.3 per cent.
Europe
Stocks in Europe pared their decline and were little changed, as commodities producers rallied with oil and copper prices and a report showed UK retail sales fell less than expected last month.
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BP Plc, Europe's second-largest oil company, and BHP Billiton, the world's biggest mining company, advanced.
Europe's Dow Jones Stoxx 600 Index slipped less than 0.1 per cent to 323.11 at 9:42 a.m. in London, after earlier declining as much as 0.7 per cent. The MSCI Asia Pacific Index lost 0.1 per cent. Futures on the Standard & Poor's 500 Index added 0.4 per cent.
US
US stocks tumbled, sending the Standard & Poor's 500 Index to its biggest two-day drop since March, as the Federal Reserve signaled it is done cutting interest rates and record oil prices threatened to reduce profits at consumer companies.
Citigroup Inc., Bank of America and JPMorgan Chase & Co. sent financial shares to their lowest since April 15. Target Corp. led retailers to their worst decline in a month and an index of airlines slid to an all-time low.
The S&P 500 lost 22.69 points, or 1.6 per cent, to 1,390.71. The Dow Jones Industrial Average slid 227.49, or 1.8 per cent, to 12,601.19. The Nasdaq Composite Index fell 43.99, or 1.8 per cent, to 2,448.27. Four stocks retreated for every one that rose on the New York Stock Exchange.