By Patrick Rial and Masaki Kondo
Nov. 12 (Bloomberg) -- Asian stocks fell after Inpex Corp. cut its profit forecast, Fortescue Metals Group Ltd. said iron- ore shipments may drop and commodity prices slumped, pointing to a worsening outlook for global economies.
Inpex, Japan's largest energy explorer, slid 3.7 percent after saying profit will fall amid declining crude prices. Oil today sank below $59 a barrel. Fortescue plunged 7.9 percent. Resona Holdings Inc., the nation's No. 4 listed bank, lost 3.3 percent after Moody's Investors Service cut its outlook on Norinchukin Bank, Japan's main agricultural bank.
The MSCI Asia Pacific Index retreated 1.4 percent to 85.83 as of 9:56 a.m. in Tokyo, set for its lowest close in two weeks. The gauge is down 46 percent in 2008 as credit-market turmoil slows global growth, denting demand for Asian exports. The index trades at 12 times estimated earnings, compared with a low of 8.9 times on Oct. 27.
Japan's Nikkei 225 Stock Average tumbled 2.1 percent to 8,614.22.90. JGC Corp. dropped after Credit Suisse Group downgraded the shares as falling oil prices are likely to dent orders for refineries.
In the U.S., the Standard & Poor's 500 Index dropped 2.2 percent yesterday. General Motors Corp. sank to the lowest price since 1943 as the automaker crept closer to bankruptcy. Insurers dropped after Goldman Sachs Group Inc. said investment losses may force them to raise more capital and threaten credit ratings.
Crude oil for December delivery fell 0.6 percent to $58.95 a barrel recently on the New York Mercantile Exchange on speculation the International Energy Agency will cut its 2009 oil-demand forecast because of slowing economic growth.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.
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