Sony leads Asian fall

STOCK REPORT

Asian stocks dropped after Japanese machinery orders unexpectedly fell and metals prices slumped.Sony Corp, the world's second-largest consumer electronics maker, slumped the most in two months. BHP Billiton, the biggest mining company, dropped to a one-week low.

Japan's benchmarks led the decline as the 4.5 per cent drop in machinery orders in March dented expectations for regional economic growth that has helped fuel a four-year rally in the Morgan Stanley Capital International Asia-Pacific Index.

MSCI's Asia-Pacific index dropped 0.9 per cent to 148.32 at 7:28pm in Tokyo. The Nikkei 225 Stock Average fell 1.1 per cent and the broader Topix index retreated 1 per cent. Benchmarks in Hong Kong, South Korea and Singapore slid from highs.

Markets rose only in the Philippines, Thailand and Pakistan. Bank of Communications shares surged on their first day of trading in Shanghai.

US
US stock-index futures fell after Wal-Mart Stores forecast earnings that trailed analysts' estimates, adding to concerns inflation data today will keep the Federal Reserve from cutting interest rates as the economy weakens.

Standard & Poor's 500 Index futures expiring in June lost 4.9 to 1503.8 as of 12:13pm in London. Dow Jones Industrial Average futures fell 37 to 13,351. Nasdaq-100 Index futures declined 6.25 to 1890.00.

Bank and brokerage shares tumbled yesterday after JPMorgan Chase & Co said interest rates are unlikely to fall this year. A government report on consumer prices due today may show that inflation remains at levels deemed too high by the central bank.

Europe
European food stocks declined after Deutsche Bank AG recommended reducing holdings in Nestle SA, Unilever NV and Groupe Danone, citing rising prices for milk and cocoa. Benchmarks in the region were little changed.

Media and construction companies rose after Reuters Group, the world's biggest publicly traded provider of financial data, and Hanson, the No. 1 maker of sand and gravel for construction, agreed to be bought. Rio Tinto Group and Xtrata fell on concern demand may slow in China.

The Dow Jones Stoxx 600 Index fell 0.2 per cent to 388.11 as of 11:44am in London. The Stoxx 50 declined 0.4 per cent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro lost 0.3 per cent.