Asian Stocks Decline on U.S. Consumer Spending; Honda, LG Drop

By Chen Shiyin

Sept. 1 (Bloomberg) -- Asian stocks fell, led by automakers and technology companies, on renewed concern that faltering U.S. economic growth will hurt demand for the region's exports.

Honda Motor Co., which gets half its sales from North America, and LG Electronics Inc., the world's No. 3 television maker, both dropped more than 2 percent after consumer spending in the world's largest economy slowed in July. Rio Tinto Group, the world's third-largest mining company, slumped 2.1 percent as metals prices declined on concern global demand is waning.

The MSCI Asia Pacific Index slipped 0.9 percent to 124.14 as of 9:18 a.m. in Tokyo as all 10 industry groups retreated. A measure including automakers posted the largest drop among the gauge's 10 industry groups.

The regional measure has dropped 21 percent this year as the global economy slowed and the world's largest financial companies posted writedowns and credit losses of more than $500 billion.

Japan's Nikkei 225 Stock Average fell 1.1 percent to 12,925.94. Stock indexes also declined elsewhere in the region. Malaysia and Vietnam are closed today for holidays.

U.S. markets are also closed today for the Labor Day holiday. Stocks fell on Aug. 29, paring the biggest monthly gain since April, after the Commerce Department said purchases in the U.S. rose 0.2 percent in July, one-third the pace in June, while prices surged the most in 17 years.

A measure of six metals traded on the London Metal Exchange dropped 0.5 percent on Aug. 29, with copper declining 0.3 percent and nickel losing 1.3 percent.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net.