China Merchants Bank led China's CSI 300 Index to a 15- month low. Sumitomo Mitsui Financial Group dropped in Tokyo after the Tankan survey showed large companies expect earnings to decline for the first time since the 2001 recession. Rio Tinto Group gained in Sydney following an increase in iron ore prices.
MSCI's Asian Index lost 0.4 per cent to 136.18 at 5:27 pm in Tokyo, extending a 13 per cent drop in the six months to yesterday, as record oil prices and credit-market losses weighed on global economic growth.
A gauge of financial shares retreated 1.4 per cent, the biggest decrease among the measure's 10 groups. Most national benchmarks declined. Japan's Nikkei 225 Stock Average fell 0.1 per cent to 13,463.20, completing a nine-day, 6.9 per cent loss.
Mazda Motor slipped after domestic auto sales dropped in June as rising gasoline and food costs lowered demand for new cars. Hong Kong and Thailand are closed for holidays.
Europe
Stocks fell in Europe as higher oil prices weighed on the earnings outlook for carmakers and reports on housing and manufacturing suggested the global economy will slow further. US index futures advanced.
The MSCI World Index lost 0.3 per cent to 1,398.31 at 8:05 am in London, while futures on the Standard & Poor's 500 Index rose 0.1 per cent. Europe's Dow Jones Stoxx 600 Index declined 0.3 per cent.
US
Most US stocks fell for a third day, capping the market's worst month in six years. Three stocks dropped for every two that rose on the New York Stock Exchange. The S&P 500 increased 1.62 points, or 0.1 per cent, to 1,280, paring its retreat this month to 8.6 per cent. The Dow added 3.5 to 11,350.01. The Nasdaq Composite Index lost 22.65, or 1 per cent, to 2,292.98.
