Nov. 22 (Bloomberg) -- Asian stocks declined, sending the region's benchmark to a two-month low and extending a global sell-off triggered by concern widening credit-market losses will slow economic growth.

National Australia Bank Ltd., the nation's largest, fell after saying it may have to take over debt sold by Rams Home Loans Group if the mortgage company fails to secure funding. China Merchants Bank Co. led the CSI 300 Index to its biggest loss in two weeks on speculation the worsening U.S. housing-loan crisis could slow China's economy.

``There are concerns the U.S. economy may slow down more and longer than expected,'' said Kim Young Il, who oversees $1.1 billion at Hanwha Investment Trust Management Co. in Seoul. ``The current correction may last two or three months.''

BHP Billiton Ltd. and Inpex Holdings Inc. dropped after metals prices declined and oil retreated from a record.

The MSCI Asia Pacific Index lost 0.7 percent to 153.67 at 5 p.m. in Tokyo, set for its lowest close since Sept. 18. About two stocks fell for each that gained. Declines have wiped out about $2.9 trillion of value from global stock markets in the first 20 days of the month, according to data tracked by Bloomberg.

The Topix index slid 0.1 percent, after having dropped 21 percent from its February peak, making Japan the first of the world's 10 biggest stock markets to enter a bear market this year. The yield on 10-year Japanese government bonds fell yesterday to a 23-month low of 1.439 percent on concern global growth will slow.

Global Sell-off

Benchmarks declined elsewhere in the region, except for Taiwan, Thailand, Sri Lanka and Pakistan. U.S. stocks dropped yesterday, wiping out the Standard & Poor's 500 Index gains this year, while European stocks fell to a one-year low.

National Australia slid 2 percent to A$40.48. The bank is underwriter for about half of the A$6.1 billion ($5.3 billion) of short-term debt Rams has not yet been able to refinance, and said yesterday it may have to put the debt on its own balance sheet.

Other financial shares in the region also fell. Macquarie Group Ltd., Australia's largest investment bank, slid 0.7 percent to A$75.71. Nomura Holdings Inc., Japan's No. 1 brokerage, lost 0.8 percent to 1,774 yen. HSBC Holdings Plc, Europe's largest bank by market value, declined 1.2 percent to HK$130.20 in Hong Kong.

Losses from U.S. subprime-mortgage foreclosures and coupled with slowing economic growth and falling house prices, could reach as much as $300 billion, the Organization for Economic Cooperation and Development said in a report released in Paris. It said a recession in the U.S. is ``now seen as more likely than before by some observers,'' the report said.

Unit Downgrade

Citic International Financial Holdings Ltd. fell for a sixth day in Hong Kong, declining 6.9 percent to HK$4.83 after Moody's Investors Service downgraded its Citic Ka Wah Bank Ltd. unit. The subsidiary may have losses from structured investment vehicles equivalent to a full year's profit, Moody's said.

China Merchants, the country's largest dual-currency credit- card issuer, declined 3.7 percent to 37.30 yuan. Shanghai Pudong Development Bank Co., the Chinese partner of Citigroup Inc., dropped 4.9 percent to 46.92 yuan.

China's export growth may slow next year because of declining demand from the U.S. brought about by the subprime crisis, Xinhua News Agency reported today, citing central bank Governor Zhou Xiaochuan.

``There's concern the U.S. subprime crisis will hit export growth and slow the economy, which would affect banks,'' said Leo Gao, who helps manage the equivalent of $2.3 billion at APS Asset Management Ltd. in Shanghai.

Metals Fall

BHP, the world's largest mining company, dropped 1.5 percent to A$40.44. Rio Tinto Group, the third biggest, slipped 1.6 percent to A$128.77. Korea Zinc Co., the world's second-biggest smelter of the metal, lost 5.9 percent to 119,500 won.

A measure of six metals traded on the London Metal Exchange, including nickel and zinc, fell 3.2 percent. Copper dropped 4.1 percent, nickel slipped 2 percent, and zinc tumbled 5.9 percent.

Meanwhile, crude oil fell 0.8 percent from a record to $97.29 a barrel on the New York Mercantile Exchange after an Energy Department report showed that inventories at the delivery point for the U.S. benchmark grade increased. Oil for January delivery recently traded at $97.46.

``The U.S. market was down on people's increasing concerns at the chance of a recession and that doesn't help commodity prices,'' said Steven Marsh, who helps manage the equivalent of $632 million at Trust Co. in Sydney.

Oil Declines

Inpex, Japan's largest oil explorer, slipped 1.7 percent to 1.13 million yen. Woodside Petroleum Ltd., Australia's second- biggest oil producer, dropped 2.4 percent to A$46.98. Santos Ltd., the third largest, fell 2.1 percent to A$13.27. PetroChina Co., the world's largest company by market value, slipped 1.4 percent to HK$14.12 in Hong Kong.

Shipping stocks also declined after the Baltic Dry Index, a measure of commodity-shipping costs on different routes and ship sizes, dropped 1.2 percent yesterday, its sixth straight decline.

Mitsui O.S.K. Lines Ltd., Japan's second-largest shipping line, fell 2.8 percent to 1,549 yen. Kawasaki Kisen Kaisha Ltd., the third largest, slid 1.4 percent to 1,244 yen. Hanjin Shipping Co., South Korea's largest, dropped 2.6 percent to 42,800 won.

Chi Mei Optoelectronics Corp., Taiwan's second-largest LCD maker, led liquid-crystal display makers higher after saying panel shipments will surge next year.

Chi Mei Opto gained 3 percent to NT$45.30. Sales at Chi Mei Group will climb 40 percent to NT$700 billion ($21.6 billion) next year, Chi Mei Opto spokeswoman Loreta Chen said by telephone today, confirming a report in the Economic Daily News. Growth will be driven by a 25 percent to 30 percent increase in flat- panel shipments, she said.

Samsung Electronics Co., the world's largest maker of liquid-crystal displays, surged 4.7 percent to 539,000 won. AU Optronics Corp., the world's third-largest LCD maker, added 1 percent to NT$63.60.

AU Optronics Corp. (2409 TT)
BHP Billiton Ltd. (BHP AU)
Citic International Financial Holdings Ltd. (183 HK)
Chi Mei Optoelectronics Corp. (3009 TT)
China Merchants Bank Co. (600036 CH)
Hanjin Shipping Co. (000700 KS)
HSBC Holdings Plc (5 HK)
Inpex Holdings Inc. (1605 JT)
Kawasaki Kisen Kaisha Ltd. (9107 JT)
Korea Zinc Co. (010130 KS)
Macquarie Group Ltd. (MQG AU)
Mitsui O.S.K. Lines Ltd. (9104 JT)
National Australia Bank Ltd. (NAB AU)
Nomura Holdings Inc. (8604 JT)
PetroChina Co. (857 HK)
Rio Tinto Group (RIO AU)
Samsung Electronics Co. (005930 KS)
Santos Ltd. (STO AU)
Shanghai Pudong Development Bank Co. (600000 CH)
Woodside Petroleum Ltd. (WPL AU)

To contact the reporter on this story: Chen Shiyin in Singapore at schen37@bloomberg.net; William Sim in Seoul at wsim2@bloomberg.net.

Last Updated: November 22, 2007 03:45 EST