May 8 (Bloomberg) -- Asian stocks declined for a second day, led by financial companies and power generators, on concern new U.S. disclosure rules will reveal further credit losses and record oil prices will curtail earnings growth.

Mizuho Financial Group Inc., Japan's third-largest publicly traded bank, and ICICI Bank Ltd. fell after U.S. regulators told investment banks to disclose capital and liquidity levels. Tokyo Electric Power Co., Asia's No. 1 utility, dropped the most in a month after crude traded at $123.71. Samsung Electronics Co. and Honda Motor Co. led exporters lower after reports showed U.S. home sales fell and consumer debt rose.

``The market is worried about additional impairment losses,'' said Soichiro Kono, a fund manager in Tokyo at Norinchukin Zenkyoren Asset Management Co., which manages about $10 billion in assets. ``The U.S. economy is getting worse. Simply put, it's in a recession.''

The MSCI Asia Pacific Index lost 0.7 percent to 150.41 as of 7:14 p.m. in Tokyo, with about two stocks retreating for each that gained. Financial shares were the biggest drag among the benchmark's 10 industry groups. Most Asian benchmarks retreated.

Japan's Nikkei 225 Stock Average slumped 1.1 percent to 13,943.26. Sumitomo Realty & Development Co. retreated after Daiwa Institute of Research cut its rating on some developers. In Hong Kong, Kerry Properties Ltd. fell the most in almost two months on speculation that further gains may be limited.

Mizuho, Kookmin

U.S. stocks tumbled yesterday with the Standard & Poor's 500 Index losing 1.8 percent, the biggest drop since April 11. Merrill Lynch & Co. and Lehman Brothers Holdings Inc. slumped after the Securities and Exchange Commission said the disclosure of capital and liquidity levels will be required this year.

``The fact that it has been taken negatively seems to suggest there are some skeletons in the closet,'' said Winston Sammut, managing director of Maxim Asset Management Ltd. in Sydney. ``This is a negative in a global sense because of the contagion that could follow on from that.''

S&P 500 futures expiring in June rose 0.2 percent recently.

Before today, the MSCI index had risen 15 percent from a two-month low set on March 17 after JPMorgan Chase & Co. rescued Bear Stearns Cos. and the Federal Reserve cut interest rates to shore up confidence in the financial system.

Mizuho dropped 5.2 percent to 525,000 yen, the biggest loss since March 31. ICICI, India's No. 2 bank by assets, fell 3 percent to 890.1 rupees. DBS Group Holdings Ltd., Southeast Asia's largest lender, slipped 1.5 percent to S$19.98. The Singapore-based bank yesterday reported its second straight quarterly profit decline.

Standard Chartered, Utilities

The world's leading banks and securities firms have reported credit losses and writedowns of about $319 billion after the collapse of the U.S. subprime mortgage market, according to data compiled by Bloomberg.

Standard Chartered Plc, a U.K. bank that makes about three- quarters of its profit in Asia, said yesterday it wrote down $253 million on credit-related assets in the first quarter. The shares fell 2.7 percent to HK$279.40 in Hong Kong.

Tokyo Electric slumped 3.2 percent to 2,615 yen. Kansai Electric Power Co., Japan's second-largest power company by market value, fell 1.8 percent to 2,425 yen.

Crude oil for June delivery climbed 1.4 percent to $123.53 a barrel in New York yesterday, the highest close since trading began in 1983. Futures were recently at $123.46.

Rice for July delivery rose as much as 3.5 percent on the Chicago Board of Trade after a May 3 cyclone ruined crops in Myanmar and China agreed to import more of the food staple. Kitoku Shinryo Co., a Japanese wholesaler of the grain, surged 5.6 percent to 415 yen. Iseki & Co., which makes rice-planting equipment, jumped 11 percent to 251 yen.

U.S. Slowdown?

Samsung, South Korea's biggest exporter of flat panels and mobile phones, fell 1.8 percent to 728,000 won. Honda, which gets about half its sales from North America, lost 2.9 percent to 3,340 yen. AU Optronics Corp., Taiwan's largest maker of liquid- crystal displays, dropped 4.5 percent to NT$59.90.

An index of pending U.S. home resales fell 1 percent in March, following a 2.8 percent drop in February that was larger than previously reported, the National Association of Realtors said yesterday in Washington.

Additionally, U.S. consumer debt surged at double the pace forecast in March as restrictions on home equity loans forced Americans to borrow using their credit cards. That raised concern spending may slow in the world's biggest economy should consumers reach a limit on borrowing.

Developers

In Japan, Daiwa cut its recommendation on Sumitomo Realty, the nation's third-biggest developer, to ``neutral'' from ``buy,'' saying concerns over the credit crunch are unlikely to ease and as property prices fall. The brokerage also cut its rating on rival developers Tokyu Land Corp. and Tokyo Tatemono Co.

Sumitomo Realty dropped 3 percent to 2,710 yen. Tokyu Land slipped 1.5 percent to 812 yen and Tokyo Tatemono fell 2.6 percent to 875 yen.

Kerry Properties, a Hong Kong-based builder controlled by the family of Malaysian tycoon Robert Kuok, decreased 4.4 percent to HK$53.70, its sharpest loss since March 20. The shares climbed to a three-month high earlier this week. A measure of property shares on the Hang Seng was the only one of four industry groups that has gained this month.

Suncorp-Metway Ltd., Australia's No. 6 bank and its third- largest general insurer, posted the biggest jump on MSCI's Asian index. The stock surged 10 percent to A$15.01, the largest gain since June 1998, after Chief Executive Officer John Mulcahy reaffirmed that the company's banking unit is on track to increase profit as much as 12 percent this year.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.

Last Updated: May 8, 2008 06:18 EDT