Most Asian Stocks Drop, Led by Banks, Carmakers; Woodside Gains

By Chua Kong Ho

June 24 (Bloomberg) -- Most Asian stocks fell for a fourth day, led by financials and automakers, after Goldman Sachs Group Inc. advised selling banks as credit losses continue and oil prices rose.

Mizuho Financial Group Inc., which recorded the biggest losses in Japan from subprime-related securities, and Commonwealth Bank of Australia retreated on speculation financial institutions will have to write down more assets. Toyota Motor Corp., Japan's largest automaker, dropped on concern higher oil prices will cut demand for cars. Inpex Holdings Inc. and Woodside Petroleum Ltd. advanced as oil rose for a third day.


``There is a heightening sense of alarm as crude prices continue their climb,'' Mamoru Shimode, Tokyo-based chief equity strategist at Deutsche Bank AG, said in an interview with Bloomberg Television.

The MSCI Asia Pacific Index was little changed at 138.61 as of 9:31 a.m. in Tokyo. About three stocks fell for every two that rose, with financial shares contributing the most to declines.

Japan's Nikkei 225 Stock Average fell 0.6 percent to 13,776. South Korea's Kospi Index declined 0.5 percent. Posco, Asia's largest stainless-steel maker, slid after saying it will cut production of the metal in July because of lower demand.

More than $8 trillion in global stock market value has been wiped out this year as a 43 percent jump in oil raises costs for consumers and businesses. Oil rose for a third day in New York amid signs an increase in output from Saudi Arabia may not boost supply enough to make up for production disruptions in Nigeria.

About $398 billion in asset writedowns and credit losses stem from the collapse of the U.S. subprime-mortgage market, according to data compiled by Bloomberg.

To contact the reporter for this story: Chua Kong Ho at kchua6@bloomberg.net