Asia Stocks Fall on U.S. Payrolls

Asian stocks fell to a seven-week low, led by mining companies and automakers, after unexpected job losses in the U.S. last month heightened concern the world's largest economy is in recession.

Toyota Motor Corp., Japan's largest automaker, retreated after the yen climbed to an eight-year high on speculation the U.S. Federal Reserve will further cut interest rates. BHP Billiton Ltd., the world's biggest mining company, declined on concern metals demand will fall. Malaysia's stock benchmark tumbled the most since September 1998 after the ruling coalition lost a two-thirds parliamentary majority.

The global economy is deteriorating more rapidly, said Kiyoshi Ishigane, who helps oversee $61 billion in assets at Mitsubishi UFJ Asset Management Co. in Tokyo. That should continue to be a drag on the market.

The MSCI Asia Pacific Index slumped 1.2 percent to 137.95 at 10:16 a.m. Tokyo, set to close at its lowest since Jan. 23. Materials and industrial stocks led declines among the index's 10 industry groups.

Japan's Nikkei 225 Stock Average retreated 1.4 percent to 12,599.78. All regional markets open for trading dropped. Australia's S&P/ASX 200 Index lost 1.9 percent, while South Korea's Kospi index fell 1.7 percent.

In the U.S., the Standard & Poor's 500 Index declined 0.8 percent, a government report showed that February payrolls fell the most in five years. Economists had estimated jobs to rise. Signs the U.S. is in a recession, along with a further deterioration in credit markets, spurred traders to bet the Fed will cut its benchmark rate as low as 1.75 percent by June.

Dollar, Yen

The dollar weakened to 101.43 against the yen on March 7, the lowest since January 2000, and was recently at 102.25. A decline in the dollar erodes the value of Japanese companies' dollar-denominated sales.

Toyota, which counts North America as its biggest market, fell 1.7 percent to 5,240 yen. Every 1 yen gain in the Japanese currency against the dollar trims 35 billion yen ($342 million) from Toyota's annual operating profit, according to the company.

Sony Corp., which derived 24 percent of consumer- electronics sales from the U.S., lost 4.6 percent to 4,400 yen.

BHP dropped 3.2 percent to A$37.64, set for its weakest closing price since Feb. 13. Rio Tinto Group, the world's third- largest mining company, declined 3.1 percent to A$127.15. Sumitomo Metal Mining Co., Japan's biggest gold producer plummeted 8.1 percent to 2,045 yen.

Gold futures in New York fell for a third day from a record in after-hours trading, while copper declined as much as 0.7 percent. Platinum prices last week completed the biggest weekly decline in eight years.

Reduced Majority

Malaysia's Kuala Lumpur Composite Index tumbled 7.2 percent, the most since Sept. 8, 1998, after the ruling coalition government lost the two-thirds majority it has held in parliament for 34 years.

While the National Front coalition kept control of Southeast Asia's third-largest economy after the March 8 election, its reduced majority and loss of power in five of 12 states may see government-sponsored infrastructure projects face increased scrutiny, said Mushtaq Ibrahim, who manages about $1.4 billion at Amanah SSCM Asset Management Bhd.