Asian stocks slide

GLOBAL MARKETS/ STOCK REPORT

Asian stocks declined after US consumer spending slowed, suggesting that growth in the world's largest economy is cooling. Honda Motor, which gets more of its earnings from the US than other major Japanese carmakers, led the drop among exporters.

Sharp, Japan's biggest maker of liquid-crystal display televisions, and Li & Fung , a Hong Kong-based supplier to Wal-Mart Stores and other US clients, fell on concern overseas demand for their products will wane.

BHP Billiton fell after an earthquake in Chile stopped production at its three mines there. National Australia Bank led the nation's banks lower on speculation they will have to raise more capital after St. George Bank sold shares.

The Morgan Stanley Capital International Asia Pacific Index fell 0.6 per cent to 161.35 as of 5:45 pm in Tokyo.

Japan's Nikkei 225 Stock Average slid 0.7 per cent to 15,396.30, while the broader Topix index rose 0.1 per cent. China's CSI 300 Index dropped 1.3 per cent to 5,081.11, the biggest drop in a week.

EUROPE
European stocks declined after Credit Agricole, SABMiller and Sodexho Alliance reported earnings that trailed analysts' estimates.

SABMiller, the world's third-largest brewer, sank to a two-month low, while Sodexho dropped the most in three years. Sanofi-Aventis SA retreated after L'Oreal SA cut its stake in France's biggest drugmaker.

The Dow Jones Stoxx 600 Index lost 0.9 per cent to 367.05 as of 9:30 am in London with all 18 industry groups falling. Analysts have cut their earnings growth forecasts for Stoxx 600 companies this year to 8.9 per cent from 9.9 per cent at the start of last month, compiled data shows.

US
US stock-index futures fell as investors speculated financial companies may reveal further losses related to bad loans and securities. Citigroup sank in Europe after the Wall Street Journal said the largest US bank may face more writedowns.

Standard & Poor's 500 Index futures expiring in December declined 6.3 points to 1,471.80 as of 10:20 am in London. Dow Jones Industrial Average futures fell 40 points to 13,235 and Nasdaq 100 Index futures decreased 16.50 points to 2,041.

US stocks fell on Wednesday, led by department stores and computer makers, after Macy's cut its sales forecast and the government said consumer spending slowed last month.

Separate reports due on Thursday from the New York Federal Reserve and its Philadelphia counterpart are likely to show manufacturing growth is slowing.

Citigroup declined 6 cents to $35.98 in Germany. The bank, which has predicted a fourth-quarter writedown of $8 billion to $11 billion, might have to increase that in the next few months if the performance of mortgage securities worsens, or if there's a fire sale of assets by other CDO managers, the Wall Street Journal said, citing Jon Peace, an analyst at Lehman Brothers Holdings.