Asia down for third day

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell for a third day. Mazda Motor declined after saying the stronger yen will erode earnings, adding to concern that Japanese profit growth is slowing.

Mazda is on course for its steepest two-day tumble in more than six years. Orix is set for its biggest two-day drop in at least three decades after the Japanese leasing company cut its profit forecast on rising credit risk.

"It would be a wonder if stock prices rose," said Yuuki Sakurai, who helps manage the equivalent of $41.5 billion at Fukoku Mutual Life Insurance in Tokyo.

The MSCI Asia Pacific Index fell 0.1 per cent to 141.90 as of 1:36 pm in Tokyo, extending a two-day, 4.2 per cent decline. More than three stocks dropped for every two that rose.

Australia's S&P/ASX 200 Index slipped 0.7 per cent, and Japan's Nikkei 225 Stock Average rose 0.2 per cent to 13,121. Those two exchanges plus India, New Zealand, the Philippines and Thailand are the main markets open in Asia on Thursday and tomorrow, the rest being closed for Lunar New Year holidays. EUROPE
European stocks declined after Infineon Technologies lowered its revenue forecast and Cisco Systems said a sales slump may last months, increasing concern that economies are slowing.

ASML Holding, Europe's largest maker of chip equipment, and Nokia declined. Cisco, the world's biggest maker of computer-networking equipment, slid in Frankfurt.

"Equity markets reflect a recession in the US," said Thomas Romig, who helps manage the equivalent of $75 billion in assets at Cominvest Asset Management in Frankfurt. "Interest-rate cuts might not be enough."

Europe's Dow Jones Stoxx 600 Index lost 1 percent to 317.27 as of 10 a.m. in London as investors awaited interest-rate decisions by the Bank of England and the European Central Bank.

US
US stock-index futures were little changed. MBIA climbed in Europe after the world's biggest bond insurer said it will bolster capital to retain its AAA credit rating.

Cisco Systems, the largest maker of computer-networking equipment, fell after Chief Executive Officer John Chambers said a sales slump may last months. Nasdaq-100 Index futures sank.

Standard & Poor's 500 Index futures expiring in March added 1.4 points to 1,331.4 at 10:27 am in London. Dow Jones Industrial Average futures gained 11 to 12,246.

Nasdaq-100 futures decreased 14.75 to 1,733.5. US stocks dropped yesterday after Macy's cut its earnings forecast and a Federal Reserve official signaled that higher inflation may prevent more interest-rate reductions.