Asian stocks were mostly down this morning, led by financial companies, after Australia's Babcock & Brown Ltd. posted its first profit decline and amid speculation credit-market losses will widen.
The Nikkei ended the morning session down 0.4% at 12,807.13. Hong Kong's Hang Seng index dropped 1.4% to 20,635.23. China's Shanghai Composite declined 1.4% to 2,488.92.