Drop in Asian stocks

Asian stocks fell for the seventh time in eight weeks this year on concern widening credit-market losses and record crude oil prices will erode profits.

Australia and New Zealand Banking Group Ltd dropped for the week after its chief executive said a “bloodbath” in debt markets will erase earnings growth.

Millea Holdings Inc slumped the most in two months after a newspaper said Aioi Insurance Co will report US$747 million of subprime-related losses. Tokyo Electric Power Co declined after crude oil prices climbed to a record high.

“The subprime issue isn’t over yet,” said Hans Kunnen, who helps manage US$128 billion at Colonial First State Global Asset Management in Sydney. “There’s no question that funding costs have gone up a touch, which doesn’t help banks.”

The MSCI Asia Pacific Index dropped 0.8 percent to 143.66, widening its loss for this year to 9 percent. Japan’s Nikkei 225 Stock Average fell 0.9 percent this week and markets retreated around the region, except for Taiwan, Indonesia and New Zealand.

Bloomberg.