Asian Stocks Fall, Extending Global Rout; Banks Lead Decline(Ho, Hin)

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Asian stocks fell, extending a global rout, after an unexpected drop in U.S. retail sales added to concern the world's largest economy will enter a recession.

HSBC Holdings Plc led banks lower after Citigroup Inc. had a record loss, and Toyota Motor Corp., which counts on the U.S. as its biggest market, retreated. Taiwan Semiconductor Manufacturing Co. dropped after Intel Corp.'s sales missed estimates. BHP Billiton Ltd. slumped along with prices of copper and crude oil.

``Realistically, the U.S. is already in a recession,'' said David Ng, who helps manage $954 million at Hwang-DBS Asset Management Sdn. in Kuala Lumpur. ``Asian markets will fall in line with the U.S.; there is no decoupling of the financial markets.''

The MSCI Asia Pacific Index tumbled 2.6 percent to 146.77 at 12:41 p.m. in Tokyo, headed for its lowest close since Aug. 29. About eight stocks declined for every one that rose, with a measure of financial companies the biggest drag on the index. Japan's Nikkei 225 Stock Average slid 2.1 percent to 13,682.69, on course for its lowest close since October 2005.

Hong Kong's Hang Seng Index decreased the most in almost two months and Singapore's Straits Times Index sank to a five-month low. The gauge has fallen 20 percent since its record on Oct. 11, signaling what some traders consider the start of a bear market.

Read More: Bloomberg