Asian stocks fell, dragging the MSCI Asia Pacific Index lower for the first time in three days, after Federal Reserve Chairman Ben S. Bernanke said the US economic outlook remains ''unusually uncertain.''
Canon, a camera maker that gets about 27 per cent of its revenue in the Americas, decreased 1.2 per cent in Tokyo. Honda, which generates 42 per cent of its sales in North America, lost 1.1 per cent. Samsung, Asia's biggest maker of chips, flat screens and mobile phones, dropped 1.4 per cent in Seoul.
The MSCI Asia Pacific Index fell 0.3 per cent to 115.30, after rising 0.3 per cent in the past two days. The gauge has slumped 11 per cent from this year's high on April 15 as Europe's debt crisis and China's steps to curb property prices fueled concern that global economic growth will slow. Speculation the US economy will contract intensified as reports pointed to a retreat in manufacturing and home sales.
''Bernanke's comments reinforced concerns the US economy is slowing,'' said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management, which oversees about $US104 billion. ''Today's trading reflects investors' disappointment.''
Japan's Nikkei 225 Stock Average lost 0.7 per cent, while Australia's S&P/ASX 200 Index slid 0.6 per cent. New Zealand's NZX 50 Index sank 0.6 per cent. South Korea's Kospi index and Hong Kong's Hang Seng Index both declined 0.4 per cent.
Further action
Futures on the Standard & Poor's 500 Index were little changed. The index fell 1.3 per cent yesterday after Bernanke told the Senate Banking Committee Fed officials ''recognise that the economic outlook remains unusually uncertain.''
''We will continue to carefully assess ongoing financial and economic developments, and we remain prepared to take further policy actions as needed,'' Bernanke said in his testimony.
Canon declined 1.2 per cent to 3315 yen. Sharp, Japan's largest maker of liquid-crystal displays, sank 2 per cent to 938 yen. Honda Motor slid 1.1 per cent to 2572 yen, while Samsung Electronics retreated 1.4 per cent to 806,000 won in Seoul.
''People in the market are anxious about the future of the global economy, making them unwilling to take on risk,'' said Hisakazu Amano, who helps oversee about $US18 billion T&D Asset Management. ''Liquidity is drying up, making prices more volatile and adding to investors' sense of insecurity.''
Seeking haven
A measure of utilities in the MSCI Asia Pacific Index advanced 0.8 per cent, the most of the broader gauge's 10 industry groups. Some investors sought haven in companies whose earnings are perceived to be sheltered from the economic cycle, said Daiwa Asset's Nagano.
Korea Electric Power, South Korea's largest utility, rose 0.5 per cent to 32,050 won. The National Pension Service won approval to increase its stake in the company to as much as 5 per cent, the nation's Financial Services Commission said.
Tokyo Electric Power, Asia's largest utility, gained 1.3 per cent to 2439 yen. Tokyo Gas, Japan's largest natural gas distributor, added 0.5 per cent to 398 yen.