Asia Stocks Decline, Led by Banks on Subprime Loss Concerns

Asian stocks fell for a second day, led by banks on speculation profits will be eroded by losses in subprime mortgage-related investments.

Mitsubishi UFJ Financial Group Inc. dropped after the Nikkei English News said Japan's six major banks may report a 40 percent drop in combined profit. Australia & New Zealand Banking Group Ltd. declined after saying it expects to set aside A$975 million ($898 million) to cover bad debts.

BHP Billiton Ltd. and Inpex Holdings Inc. led mining companies and oil producers higher after prices of metals and crude rose.

The MSCI Asia Pacific Index lost 0.2 percent to 144.95 as of 9:45 a.m. in Tokyo. The index is down 8.1 percent this year on concern the U.S. will enter a recession amid mounting losses at banks and brokerages. Financial stocks were the biggest drag on the stock benchmark today.

The Standard & Poor's 500 Index added 0.1 percent on April 4, while the Dow Jones Industrial Average fell 0.1 percent.