Asian Stocks Drop to Three-Month Low; Toyota, BHP Billiton Fall

Dec. 18 -- Asian stocks fell, extending a global equity rout, on mounting concern that the U.S. housing slump and credit crisis will stall growth in the world's biggest economy.

Toyota Motor Corp., No. 2 in U.S. sales, led declines among exporters. BHP Billiton Ltd. and Posco dropped after metal and oil prices fell.

The MSCI Asia Pacific Index lost 0.6 percent to 151.43 as of 10:14 a.m. in Tokyo, adding to a four-day, 7.9 percent drop and set for its lowest close since Sept. 18. All Asia's benchmarks open for trading fell.

U.S. stocks completed their sharpest two-day decline yesterday in more than a month, pushing the Standard & Poor's 500 Index down 1.5 percent and trimming its gain for the year to less than 2 percent.

Homebuilder confidence remained at a record low in the U.S. and manufacturing in New York expanded this month at the slowest pace since May.

National benchmarks fell in all 18 western European markets except Portugal yesterday. France's CAC 40 dropped 1.6 percent, as did Germany's DAX. The U.K.'s FTSE 100 slipped 1.9 percent.