Growth fears pulls Asia down

STOCK REPORT

Asian stocks fell to a three-week low, led by shipbuilders and oil producers, after Goldman Sachs Group cut its forecasts for regional growth.

Hyundai Heavy Industries, the world's biggest shipyard, posted its biggest decline in five months on concern new orders will slump. PetroChina and PTT dropped on speculation slowing global growth will trim demand for oil.

The MSCI Asia Pacific Index excluding Japan Index dropped 0.5 per cent to 509.24 at 4:30 pm in Hong Kong, set for its lowest close since December 20. Benchmarks retreated across the region apart from Taiwan, China, and Pakistan. Japan was closed for a holiday.

Taiwan's Taiex index rose 1.8 per cent, the biggest climb in the region, after the opposition Kuomintang party won a landslide victory in parliamentary elections.

EUROPE
European stock-index futures fell after Credit Suisse Group cut its recommendation on the region's shares and Morgan Stanley advised investors to sell Tesco, Britain's largest retailer.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, sank 21 points, or 0.5 per cent, to 4,238 at 7:45 am in London. The UK's FTSE 100 Index may decrease 24, according to Cantor Index, a betting firm.

"With fears of a global economic slowdown continuing to weigh, there were no signs of a late rally on Wall Street," said James Mitchell, a trader at CMC Markets in London. "This negative sentiment is already prevailing in Asian markets and expectations are understandably that European stocks will come under pressure too." US
US stock-index futures gained as investors increased bets that the Federal Reserve will reduce its benchmark interest rate by half a percentage point this month.

Apple Computer climbed in Europe after Bank of America raised its earnings forecast for the maker of the iPod media player. Barrick Gold and Newmont Mining advanced as gold reached a record.

Standard & Poor's 500 Index futures expiring in March added 2.7 points to 1,410.30 as of 9:51 am in London.

Dow Jones Industrial Average futures rose 20 points to 12,681 and Nasdaq 100 Index futures gained 2.50 points to 1,928.