Asian stocks fell, driving the region's benchmark to a two-year low, on renewed concerns that credit-market turmoil will hurt bank profits and curtail global economic growth. The MSCI Asia Pacific Index lost 1.7% to 122.95 as of 10:57 a.m. in Tokyo, set for the lowest close since July 26, 2006. Financial companies were the biggest drag, accounting for more than a quarter of the benchmark index's retreat.
The Nikkei ended the morning session down 363.96 points at 12,801.49. Hong Kong's Hang Seng dropped 0.6% in early minutes.
