Asian Stocks Fall; Mizuho Declines on Report of Subprime Losses

Asian stocks fell, sending a regional benchmark to its biggest weekly loss in almost three months, on speculation Mizuho Financial Group Inc. will delay a brokerage merger because of subprime-mortgage losses.

Mizuho dropped to the lowest in more than two years after a report in Japan's Nikkei newspaper said Mizuho Securities Co. had losses exceeding 100 billion yen ($888 million), delaying its plan to combine with Shinko Securities Co.

Nintendo Co. declined after Federal Reserve Chairman Ben S. Bernanke said U.S. growth may ``slow noticeably,'' raising concern that exports to Asia's largest export market will slump.

``We should be worried about all the financials,'' said Masafumi Oshiden, a fund manager in Tokyo at BlackRock Japan Co., whose parent company holds $1.1 trillion in assets. ``If the banks' attitude towards lending to small and mid-sized companies slows down, that could mean the economy slowing down.''

The Morgan Stanley Capital International Asia Pacific Index fell 0.6 percent to 162.02 as of 5:28 p.m. in Tokyo. Financial shares were the biggest drag among the benchmark's 10 industry groups. The index has lost 3.8 percent in five days, set for its biggest weekly decline since August on concern credit losses in the U.S. will slow growth in the world's largest economy.

Japan's Nikkei 225 Stock Average slipped 1.2 percent to 15,583.42, its sixth straight day of losses. Benchmarks fell in China, Singapore, Malaysia, New Zealand and Sri Lanka.

Rio Tinto Group jumped the most in 20 years after BHP Billiton Ltd. made an approach that may lead to a record takeover. China Petroleum & Chemical Corp., Asia's biggest refiner, rose after Goldman, Sachs & Co. recommended the stock.
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