July 4 (Bloomberg) -- Most Asian stocks fell, sending the region's benchmark index lower for a fourth week, as record oil and slowing growth dent profits. Japan's Nikkei 225 Stock Average dropped for a 12th day, the longest losing streak in 54 years.

Kyushu Electric Power Co. led power producers lower after oil rose above $145 a barrel. Bumiputra-Commerce Holdings Bhd. paced declines in Malaysia as UBS AG cut its forecast for banks' profits, citing higher consumer prices and weaker growth. Reliance Communications Ltd. jumped after a newspaper report said the Indian mobile-phone operator plans to raise as much as $6 billion to buy Africa's MTN Group Ltd.

``It's going to be a difficult second half unless we get a sharp fall in the oil price,'' said Lim Kok Boon, Singapore-based chief investment officer at Fortis Private Banking, which oversees $9 billion ``There's going to be a lot of pain.''

The MSCI Asia-Pacific Index added 0.1 percent to 132.74 at 7:07 p.m. Tokyo time, with five stocks retreating for every four that rose. The measure earlier dropped to 131.97, which would be the lowest close since November 2006. The index completed a four- week, 12 percent slide, the longest losing streak since the period ended Feb. 8.

Japan's Nikkei 225 retreated 0.2 percent to 13,237.89, capping a 12-day, 8.4 percent slump. That's the longest decline since 1954, when the end of the Korean War caused a slump in Japanese industrial sales to the U.S. military. Malaysia's Kuala Lumpur Composite Index dropped 1.7 percent after trading resumed following a one-day suspension because of a systems failure.

All Asian benchmark indexes fell this week, except Vietnam.

Most U.S. stocks fell yesterday, completing the longest streak of weekly declines in four years, after Nvidia Corp. cut its sales forecast. Markets are closed today for a holiday.

Kyushu, Tenaga

Kyushu Electric, Japan's fifth-largest power producer by market value, lost 0.9 percent to 2,190 yen. Tenaga Nasional Bhd., a Malaysian state-controlled power producer, dropped 2.5 percent to 7.80 ringgit.

Crude oil rose 1.2 percent to $145.29 a barrel yesterday in New York and touched a record high of $145.85 during the day. Futures have more than doubled from a year earlier, spurring finance ministers from the Group of Eight nations to say last month that surging food and fuel prices have replaced the credit squeeze as the biggest threat to the world economy.

``Investors have never experienced a surge in oil like this and they are clueless about when it ends or the effect on corporate earnings,'' said Yuuki Sakurai, general manager of financial and investment planning in Tokyo at Fukoku Mutual Life Insurance Co., which manages about $54 billion.

Worst Start

MSCI's Asian index fell 13 percent in the first half, the worst start since 1992, as $400 billion in bank writedowns and credit-related losses and rising oil prices offset efforts by central banks to bolster confidence in financial markets.

Declines among utilities were capped after Babcock & Brown Power said it will sell a power station for A$700 million ($672 million), using the profits to cut debt. The stock jumped 18 percent to 78 Australia cents, trimming its year-to-date loss to 71 percent.

Parent Babcock & Brown Ltd., Australia's second-biggest securities firm, rose 4.6 percent to A$7.28. The shares have declined 73 percent this year, the worst performer among the MSCI Asian index's 990 members.

Bumiputra-Commerce, Malaysia's second-largest bank, dropped 2 percent to 7.40 ringgit, its lowest since November 2006. Public Bank Bhd., the third biggest, slipped 1 percent to 10.10 ringgit.

Banks' Earnings

UBS cut its earnings estimates for banks, saying borrowers' abilities to repay loans have been affected by inflation. CLSA Ltd. also lowered its share-price forecasts for Maybank, Public Bank and two other Malaysian banks.

Malaysia's inflation may reach a nine-year high of 5 percent in July, Bank Negara Malaysia said this month. The central bank will meet to review borrowing costs on July 25. Central banks in Indonesia, Taiwan, India, Vietnam and the Philippines have all boosted interest rates since the start of June.

Bursa Malaysia Bhd., operator of the nation's stock exchange, dropped 5.8 percent to 6.45 ringgit, the lowest close since November 2006. The trading suspension yesterday was caused by a hardware systems failure, ``the worst'' experienced by Bursa, Chief Executive Officer Yusli Mohamed Yusoff said yesterday.

In Hong Kong, Industrial and Commercial Bank of China Ltd., the world's largest lender by market value, led gains among Chinese banks after saying first-half profit probably rose by more than 50 percent. The shares rose 2 percent to HK$5.11, the biggest advance in almost three weeks.

Reliance Communications jumped 6.2 percent to 414 rupees. The Indian wireless operator plans to raise funds from banks including Deutsche Bank AG to acquire MTN, according to the Economic Times, which cited unidentified people familiar with the matter. Reliance Communications spokesman Gaurav Wahi declined to comment on the report.

To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Chua Kong Ho in Shanghai at kchua6@bloomberg.net

Last Updated: July 4, 2008 06:16 EDT