Asian scrips slump

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell the most in 12 weeks, extending a global rout after the dollar plunged yesterday, oil slumped and US financial companies disclosed mounting credit-market losses.

The Morgan Stanley Capital International Asia-Pacific Index slumped 2.8 per cent to 162.66 as of 6:48 pm in Tokyo, the most since August 17. Shares declined in all markets open for trading.

The Nikkei 225 Stock Average lost 2 per cent in Japan, where the government today reported a bigger-than-expected drop in machinery orders. China's CSI 300 Index and Taiwan's Taiex index were the region's two worst performers, tumbling 4.8 percent and 3.9 percent respectively. Markets in Singapore, Malaysia and Sri Lanka were shut for holidays.

Europe
European stocks retreated, led by financial companies, after Morgan Stanley said the outlook for credit markets worsened and Fortis reported profit that trailed analysts' estimates.

Europe's Dow Jones Stoxx 600 Index slid 0.3 per cent to 374.55 at 12:45 pm in London. The measure clawed back more than two-thirds of its earlier losses after BHP Billiton said it offered to buy Rio Tinto Group, a proposal that was rejected.

National benchmarks declined in 14 of the 18 western European markets. France's CAC 40 dropped 0.5 per cent, while Germany's DAX added 0.3 per cent.

The UK's FTSE 100 gained 0.3 per cent. The Euro Stoxx 50, a measure for the euro region, slid 0.5 percent, while the Stoxx 50 was little changed.

US
US stock-index futures fell. Cisco Systems Inc. tumbled in Europe after Chief Executive Officer John Chambers said a "dramatic'' drop in sales to automobile and financial companies is curbing growth.

Lehman Brothers Holdings and Goldman Sachs Group declined after Morgan Stanley booked losses on subprime mortgage- related assets and said the outlook for credit markets has worsened. Alcoa Inc., the world's biggest aluminum maker, advanced after BHP Billiton Ltd. said it offered to buy rival Rio Tinto Group.

Standard & Poor's 500 Index futures expiring in December lost 1.40 to 1,481.40 as of 11:29 am in London. Dow Jones Industrial Average futures fell 7 to 13,348. Nasdaq-100 Index futures decreased 13 to 2,168.

US stocks retreated yesterday, erasing their gains since the Federal Reserve's September 18 interest-rate cut, after New York expanded its probe of the mortgage industry, General Motors Corp. posted a record loss and the dollar tumbled.