Asian stocks sank for a second day, led by banks and automakers, on concern corporate earnings will deteriorate further as the World Bank predicted the global economy to shrink for the first time since World War II. Shinsei Bank Ltd., the Japanese lender partly owned by investor Christopher Flowers, slumped 7.5 percent on plans to raise capital. Honda Motor Co. Ltd., Japan’s No. 2 automaker, lost 3 percent after the country posted its first current account deficit in 13 years. Foxconn International Holdings Ltd., the world’s biggest contract maker of mobile phones, tumbled 9 percent in Hong Kong as it reported a second-half loss. The MSCI Asia Pacific Index lost 1 percent to 71.25 as of 1:29 p.m. in Tokyo, with finance companies accounting for half the drop. The gauge has fallen 20 percent this year, extending last year’s record 43 percent slump as the global recession pummeled profits at companies including BHP and Honda. “There’ll be a point when things do start to stabilize, but it’s hard to say where that level is,” said Paul Xiradis, who manages the equivalent of $8 billion as chief executive officer of Ausbil Dexia Ltd. in Sydney. “There are still enough things to worry about.” Japan’s Nikkei 225 Stock Average fell 0.8 percent to 7,113.65, while Hong Kong’s Hang Seng Index lost 1.7 percent China’s Shanghai Composite Index dropped 1 percent. All other benchmark indexes fell in Asia except in Australia, South Korea, Vietnam and Sri Lanka. Hon Hai Precision Industry Co., the world’s largest contract maker of electronics, dropped 6.9 percent in Taipei on lower fourth-quarter profit. Sumco Corp., the world’s second biggest maker of silicon wafers, slumped 12 percent in Tokyo after forecasting a loss. BHP Billiton Ltd., the world’s biggest mining company, climbed 5.4 percent in Sydney on higher copper and oil prices. U.S. Unemployment Futures on the Standard & Poor’s 500 Index lost 0.1 percent today. The gauge rose 0.1 percent in New York on March 6 as energy stocks rallied on oil. Gains were limited as a lower sales forecast for Apple Inc. added to concerns the global slowdown is eroding profits. “I don’t see the U.S. economy getting better for a long time,” Jim Rogers, chairman of Singapore-based Rogers Holdings, said in an interview today. “I hope the U.S. recovers in two years. That will be good news. It could be 10 years.” Shinsei Bank slumped 7.5 percent to 74 yen in Tokyo. The lender announced the plan to sell preferred securities, without specifying the amount, after trading closed on March 6. The company joins larger banks including Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. in raising capital as losses on investments sap their financial strength. Finance stocks on the MSCI Asia Pacific Index are the worst performers this year of 10 industry groups as credit-related losses worldwide swelled to almost $1.2 trillion. Declining Exports Mitsubishi UFJ, Japan’s biggest publicly traded bank, lost 3.7 percent to 386 yen. Mizuho Financial, the country’s second- largest, fell 3.4 percent to 170 yen. Honda Motor, which gets more than 80 percent of its sales outside of Japan, declined 3 percent to 2,085 yen. Nissan Motor Co., Japan’s No. 3 automaker, dropped 2.8 percent to 317 yen. Toyota Motor Corp., the world’s largest carmaker, lost 1.7 percent to 2,850 yen. Japan posted a current-account deficit of 172.8 billion yen ($1.76 billion) in January, its first in 13 years, Ministry of Finance figures released today show, as exports collapse. The global economy is likely to shrink for the first time since World War II, and trade will decline by the most in 80 years, a World Bank report said yesterday. Lower Than Expected Honda shares sank 10 percent last week and Toyota retreated 8.8 percent as they reported a slump in U.S. auto sales for February. The U.S. unemployment rate climbed to 8.1 percent last month, the Labor Department said on March 6. Foxconn tumbled 9.3 percent to HK$2.36 after posting a second-half loss of $21.1 million as orders declined. The company was expected to report profit of $72.5 million, which was the median of three analyst estimates in a Bloomberg survey. Hon Hai Precision, Foxconn’s parent, dropped 6.9 percent to NT$70.20. The company’s fourth-quarter net income plunged 65 percent from a year earlier, more than analysts in a Bloomberg survey estimated. Sumco slumped 12 percent to 1,112 yen after forecasting a first-half loss on falling demand. Intel Corp. and Toshiba Corp., which buy silicon wafers to make chips, saw earnings worsen in the latest financial quarter as semiconductor sales slumped. In Sydney, BHP, Australia’s largest oil producer, gained 5.4 percent to A$29.15. Rio Tinto Group, the world’s third- biggest mining company, climbed 6.1 percent to A$48.47. Inpex Corp., Japan’s largest oil explorer, gained 4 percent to 645,000 yen in Tokyo. Copper in New York added 2.2 percent on March 6, while crude oil jumped 4.4 percent to $45.52 a barrel, the highest settlement in almost six weeks.

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