March 31 (Bloomberg) -- Asian stocks slid this week after reports pointed to slowing U.S. economic growth and as Federal Reserve Chairman Ben S. Bernanke said inflation remains a risk.

Sony Corp. and Samsung Electronics Co. led declines among companies that rely on sales to the U.S., the region's largest export market.

``The U.S. economy remains a concern to Asian suppliers,'' said Barro Liao, who helps manage $2.7 billion at PCA Securities Investment Trust Co. in Taipei. ``A faltering U.S. economy will not leave much room for growth in Asia.''

Energy stocks rose, led by PetroChina Co. and Woodside Petroleum Ltd., after oil prices climbed to the highest in more than six months.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.9 percent to 144.65 in the previous five days, sliding for the fourth time in five weeks. Declines this week trimmed the measure's gain in the first three months of the year to 2.9 percent.

Japan's Nikkei 225 Stock Average slid 1.1 percent, while the broader Topix index dropped 1.6 percent. Tokyo Electric Power Co. led the nation's utilities lower after the Japanese government tightened rules on reporting nuclear accidents. Benchmarks also fell in Thailand, Pakistan and India, and gained elsewhere.

In the U.S., the Standard & Poor's 500 Index dropped 1.1 percent this week after consumer confidence, home prices and new housing sales declined.

Bad Indicators

Sony, the world's second-largest maker of consumer electronics, lost 3.9 percent this week. Samsung, which accounted for about 16 percent of South Korean exports last year, fell 2.9 percent. Toyota Motor Corp., Japan's largest automaker, slipped 3.7 percent. It made about a third of fiscal 2006 revenue in North America.

The U.S. Conference Board's index of consumer confidence dropped to 107.2 this month from 111.2 in February. Spending accounts for more than two-thirds of the U.S. economy. Meanwhile, home values fell 0.2 percent in January from a year earlier, according to the S&P/Case-Shiller Index, a measure of home prices in 20 U.S. metropolitan areas. The decrease was the first since the group started compiling the measure in January 2001.

The reports came after a day after new-home sales in the U.S. dropped 3.9 percent to an annual pace of 848,000 in February. Economists had predicted they would rise to a 985,000 rate, according to a Bloomberg News survey.

``The U.S. depends hugely on spending, so if consumption is hit, so is the whole economy,'' said Park Seh Ick, who helps manage about $1.3 billion at Hanwha Investment Trust Management Co. in Seoul. ``I think the U.S. indicators that we'll see in the second quarter will be quite bad.''

`Greater Risk'

Shares also retreated after Bernanke said in testimony before Congress on March 28 that inflation is a ``greater risk'' than slower growth, spurring concern the Fed may be unwilling to lower interest rates to prop up the economy.

James Hardie Industries NV, the biggest supplier of home siding in the U.S., declined 2.2 percent, its seventh consecutive weekly loss. Taiwan Semiconductor Manufacturing Co., the world's largest maker of customized computer chips, lost 3 percent.

``Bernanke appears to be more conservative in his view that inflation is a greater risk,'' said Jay Moghe, who manages $150 million at Opes Prime Asset Management in Singapore. ``Markets have clawed back some of their gains after the sell-off in late February and March but they'll need to see better news in terms of rates to return to where they left off.''

Oil Shares Gain

The MSCI Asia-Pacific Energy Index jumped 3.2 percent this week, the biggest advance among the regional measure's 10 industry groups. Crude oil for May delivery climbed 5.8 percent to $65.87 a barrel on the New York Mercantile Exchange, closing on March 29 at its highest since Sept. 8.

PetroChina, the nation's largest oil explorer, gained 5.6 percent this week. Woodside Petroleum, Australia's second- largest oil producer after BHP Billiton Ltd., surged 6.9 percent, while Inpex Holdings Inc., Japan's largest, jumped 7.6 percent.

``Resources stocks make up a significant part of the market,'' said Hans Kunnen, who helps manage $70 billion at Colonial First State Investment Management Australia Ltd. in Sydney. ``In the absence of overarching economic or earnings news, they tend to rise in line with commodities prices, like oil.''

Tokyo Electric, Japan's No. 1 power producer, slumped 6.9 percent this week. Kansai Electric Power Co., the second largest, fell 11 percent. Chubu Electric Power Co. tumbled 9.4 percent.

Chubu Electric, Tokyo Electric and Tohoku Electric Power Co. admitted this month they failed to report accidents during routine shutdowns over the past three decades.

Scandals Emerging

Tokyo Electric said on March 22 an accident that may have occurred at its Fukushima Daiichi plant in 1978 could have caused a nuclear chain reaction. Hokuriku Electric Power Co. was ordered to halt operations at its Shika No. 1 reactor on March 15 after the company said it covered up an accident eight years ago.

``Successive scandals involving power producers have been coming to light,'' said Hideyuki Ookoshi, who oversees $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``There's concern more scandals will emerge, and that's causing the shares to be sold off.''

China's CSI 300 Index gained 2.4 percent this week, the region's biggest advance, on speculation the government will approve an additional $6 billion quota for overseas investors to buy local-currency shares.

The new quota, which is being discussed and awaiting approval by the Chinese government, the official China Daily newspaper reported. Overseas investors are allowed to invest in A shares through the so-called qualified foreign institutional investor, or QFII, program. The current quota is $10 billion.

`Great News'

``A likely increase of the QFII quotas is great news for the market,'' said Lu Yizhen, who helps manage about $640 million at Citic-Prudential Fund Management Co. in Shanghai. ``The government will keep adding QFII quotas at a controlled pace.''

China is studying ways to expand the investment quota for foreign investors, the State Administration of Foreign Exchange's Director Hu Xiaolian told reporters in Beijing on March 5.

Industrial & Commercial Bank of China, which this week overtook Bank of America Corp. as the world's second-most valuable financial firm, gained 6.6 percent in Shanghai. Bank of China Ltd., the nation's second-largest lender, gained 6.7 percent.

Shares also gained after Industrial Bank Co., a Chinese lender in which HSBC Holdings Plc has a stake, said 2006 profit soared 54 percent from a year earlier to 3.8 billion yuan ($491 million) because the nation's economic growth led to increased borrowing and reduced bad loans. The stock jumped 9.2 percent.

To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net

Last Updated: March 30, 2007 22:57 EDT