Asian Stocks Fall as Record Crude Oil Fuels Inflation Concern

Asian stocks fell for the first time in three days, on concern demand for the region's exports will slow as crude oil above $110 a barrel threatens to dent consumer spending worldwide.

Toyota Motor Corp., which gets 92 percent of its sales outside of Asia, dropped in Tokyo as the dollar slumped to the lowest against the yen since 1995. Mitsubishi UFJ Financial Group Inc. led declines among banks. Inpex Holdings Inc., Japan's largest oil explorer, rose.

The MSCI Asia Pacific Index fell 0.7 percent to 139.53 as of 10:24 a.m. in Tokyo, snapping a two-day, 2.3 percent gain. Nine of the gauge's 10 industry groups declined, with more than three stocks dropping for each one that climbed.

Japan's Nikkei 225 Stock Average fell 1.7 percent to 12,650.79. Australia's S&P/ASX 200 Index declined 1.4 percent. All markets open for trading fell except New Zealand.

The U.S. Standard & Poor's 500 Index lost 0.9 percent yesterday after investment banks including Goldman Sachs Group Inc. said a Federal Reserve plan to pour as much as $200 billion into the financial system may not eliminate gridlock in credit markets.

Crude oil traded near a record $110.20 a barrel in New York as the dollar dropped to an all-time low against the euro and its weakest against the yen since December 1995, prompting investors to buy commodities.