Worries over US growth pull Asian stocks down

ASIAN stocks fell for the first time in four days on renewed concern that economic growth is slowing in the United States, the region's largest export market.

Rio Tinto Group and Nippon Mining Holdings Inc, Japan's largest copper producer, slipped after a report showed US manufacturing expanded in November at the slowest pace in 10 months, raising speculation demand for raw-materials will wane. JFE Holdings Inc led declines by steel firms.

"It's difficult to be bullish at the moment with the US economy looking more like it's headed for a recession than a slowdown," said Toshio Konishi, who helps oversee US$4.3 billion at Polar Capital Partners in Tokyo.

The MSCI Asia Pacific Index lost 0.3 percent to 161.74 as of 5:50pm in Tokyo, snapping a three-day, 3.6-percent rally. A measure of raw-materials producers had the second-biggest drop among the benchmark's 10 industry groups, Bloomberg News said.

Japan's Nikkei 225 Stock Average lost one percent. About half of Asia's key stock indexes fell. Mitsui O.S.K. Lines Ltd led shipowners lower after Baltic Exchange Ltd Chairman Michael Drayton said commodity freight rates will decline.

Hong Kong's Hang Seng Index climbed as Ping An Insurance (Group) Co won regulatory approval to invest more funds abroad.

The MSCI Asia Pacific Index has dropped 6.2 percent from its November 1 record amid speculation rising losses tied to investments in US subprime mortgages will slow growth in the world's largest economy. Federal Reserve Bank of San Francisco President Janet Yellen said on Monday financial conditions and consumer spending deteriorated more than she expected.

The US Institute for Supply Management's factory index fell to 50.8, matching economists' forecasts, from 50.9 the previous month, the Arizona-based group said on Monday. Fifty is the dividing line between contraction and expansion.

Rio Tinto, the world's third-largest miner, fell 2.2 percent to A$143.10 (US$125.19) and BHP Billiton Ltd, the largest, lost 0.2 percent to A$43.10. Nippon Mining slumped 5.2 percent to 766 yen (US$6.98).

"Industrial production is going to be downgraded on a forecast decline in US volumes and our miners will be affected," said Tom Murphy, who helps manage the equivalent of US$1 billion at Deutsche Bank AG in Sydney.

JFE, the world's third-largest steel maker, dropped 5.1 percent to 5,760 yen, while Nippon Steel Corp, the second-largest, fell 2.7 percent to 655 yen.