Asian stocks fell, dragging down the MSCI Asia Pacific Index by the most in eight days, and commodities declined on concern European government finances and slowing economic growth will derail a global recovery. The MSCI Asia Pacific Index dropped 0.3 percent to 126.70 as of 12:33 p.m. in Tokyo. Oil decreased for the first time in five days to trade at $76.25 a barrel. Zinc paced a drop among metals, while cotton climbed. Futures on the Standard & Poor’s 500 Index rose 0.1 percent. Irish bond-yield spreads widened yesterday to a record against German bunds and Portugal’s spreads also increased, on concern the countries will struggle to rein in budget deficits. Reports today on consumption are forecast to show declines in prices in Germany, spending in France and confidence in the U.S. “Europe’s economy is suffering a chronic disease,” said Tetsuya Inoue, chief researcher for financial markets at Nomura Research Institute in Tokyo. “Rescue measures may help, but won’t likely solve problems quickly.” Japan’s Nikkei 225 Stock Average fell 0.6 percent, the biggest decline among benchmark equity indexes in the Asia- Pacific region. About 1,400 companies go ex-dividend today, according to data compiled by Bloomberg. Investors who buy those stocks won’t be entitled to the April-September dividend. Commodities, Currencies Sony Corp dropped 0.7 percent in Tokyo. China Unicom (Hong Kong) Ltd. declined 3.3 percent in Hong Kong, the biggest decrease on the Hang Seng Index. Crude-oil futures for November delivery lost 35 cents a barrel or 0.3 percent in electronic trading on the New York Mercantile Exchange. Prices have retreated 4 percent this year. The euro traded at 113.42 yen in Tokyo from 113.41 yen in New York yesterday, when it reached 113.97, the strongest since Aug. 3. The euro was at $1.3464 from $1.3455, after touching $1.3507 yesterday, the highest level since April 20. The dollar was at 84.24 yen from 84.29 yen. Germany’s consumer-price index fell 0.2 percent in September, according to the median estimate of economists in a Bloomberg News survey before today’s data. Consumer spending in France dropped 0.2 percent in August, another survey showed. European Central Bank President Jean-Claude Trichet told lawmakers in Brussels yesterday that economic growth and inflation in the euro region will remain moderate, signaling the bank has no plans to raise interest rates soon. “Concerns about the global economic outlook haven’t cleared,” said Yasushi Noguchi, a strategist in Tokyo at SMBC Friend Securities Co. “There are still issues related to Europe’s debt.” The contract for three-month delivery of zinc on the London Metal Exchange dropped as much as 1.4 percent to $2,176 a metric ton, and traded at $2,187.25. Cotton for December delivery climbed 1.6 percent to $1.0561 a pound in New York, the highest price in 15 years, as a drop in production in China, the world’s biggest grower, boosted concern that supply will lag behind demand. To contact the reporters on this story: Nicolas Johnson in Tokyo at nicojohnson@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net. To contact the editor responsible for this story: Patrick Chu in Tokyo at pachu@bloomberg.net.

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