Asia Stocks Fall for Fifth Day on Growth Concerns; Honda Drops

By Chua Kong Ho

Sept. 5 (Bloomberg) -- Asian stocks fell for a fifth day, extending a global rout, after rising U.S. jobless claims deepened concern a global economic slowdown is cutting demand for the region's exports.

Honda Motor Corp., which gets more than half its sales from North America, slid 2.8 percent after U.S. unemployment claims rose to the highest in almost five years. Santos Ltd., Australia's No. 3 oil and gas producer, sank 2.8 percent as crude oil fell to the lowest in more than five months. Sony Corp., the world's second-largest maker of consumer electronics, dropped 3 percent after announcing a worldwide computer recall.

``Sentiment is terrible,'' said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, which manages about $108 billion. ``You've got this ongoing correction in commodity prices, issues regarding financials, and concerns about profit downgrades in economically-sensitive companies.''

The MSCI Asia Pacific Index lost 1.4 percent to 117.53 at 9:29 a.m. in Tokyo. The measure is headed for a 6.3 percent decline this week and its lowest since July 19, 2006. Nine of the 10 industry groups on the index fell, with about 50 stocks declining for every one that rose.

The region's benchmark index has tumbled 25 percent this year, almost twice the drop in the S&P 500, as a global slowdown cuts demand for television sets and cars made in Asia.

Japan's Nikkei 225 Stock Average fell 2.6 percent to 12,228.48. Australia's S&P/ASX 200 Index dropped 2.5 percent. Westfield Group, which owns 55 U.S. malls, sank 1.8 percent.

U.S. Unemployment

South Korea's Kospi Index retreated 1.8 percent. Hyundai Motor Co. declined 4.8 percent after Yonhap News reported labor union members rejected an initial pay agreement reached by labor leaders and management.

U.S. stocks tumbled, sending the Standard & Poor's 500 Index down 3 percent for the longest stretch of losses since January, after initial claims for jobless benefits exceeded forecasts and a decline in oil pushed energy producers lower. S&P futures were little changed today.

The number of people staying on jobless rolls rose to 3.435 million in the U.S., the highest since November 2003, in the week ended Aug. 23, the Labor Department said yesterday. Oil traded at $106.50 a barrel at 8:56 a.m. in Tokyo, after falling 1.3 percent yesterday.

AMP is ``underweight'' Asian, Australian and emerging market shares and has been increasing exposure to cash and bonds since mid-August, said Oliver.

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