Nov. 11 (Bloomberg) -- Platinum declined for the first time in three days as the deteriorating outlook for company earnings renewed concerns the global financial crisis will reduce demand for the metal used in vehicles.

The MSCI Asia Pacific Index retreated as much as 3.5 percent after jumping 3.5 percent yesterday as China unveiled a $586 billion economic stimulus package. U.S. auto sales plunged in October for a 12th straight month, the longest streak in 17 years, overwhelming efforts by General Motors Corp., Ford Motor Co. and Chrysler LLC to cut costs by trimming payrolls and shutting factories.

``People are more concerned about slumping car sales now,'' Shuji Sugata, research manager at Mitsubishi Corp. Futures & Securities Ltd. in Tokyo, said today by phone. ``The Chinese plan's effect will take time.''

Immediate-delivery platinum lost as much as $22, or 2.6 percent, to $835 an ounce and stood at $840 as of 5:30 p.m. Tokyo time. Palladium for immediate delivery was down 0.2 percent at $221 an ounce.

Spot platinum prices, also under pressure from the dollar's recovery against the euro, have slumped 45 percent this year as sales at carmakers, the biggest global users of the metal, plummeted in the U.S. and Europe.

Toyota Motor Corp., the world's second-largest automaker, slashed the company's net income forecast by 56 percent on Nov. 6 after higher fuel costs and a credit crunch pushed industry wide October U.S. sales to the lowest level since 1983. Toyota followed Honda Motor Co. and Nissan Motor Co. in predicting larger-than-expected drops in earnings.

Lower Forecasts

Toyota lowered its vehicle sales forecast 5.7 percent to 8.24 million from 8.74 million, as it slashed its North American sales goal by 8 percent to 2.42 million.

Gains in most commodities yesterday were a ``major reaction to China's statement,'' said Akhilesh Kamkolkar, head of futures at Halifax Investment Services in Sydney. ``However, the general economic outlook still remains gloomy'' after the U.S. unemployment rate climbed to the highest since 1994, he said.

U.S. employers fired 240,000 workers last month, having shed 284,000 staff in September, the biggest two-month slump since 2001, the U.S. Labor Department said Nov. 7. The jobless rate in the world's largest economy leapt to 6.5 percent.

Platinum for October delivery fell as much as 4.4 percent to 2,593 yen a gram ($824 an ounce) on the Tokyo Commodity Exchange and closed down 106 yen, or 3.9 percent, at 2,607 yen.

To contact the reporter on this story: Jae Hur in Singapore at jhur1@bloomberg.net

Last Updated: November 11, 2008 03:55 EST