ASIAN stocks fell the most in almost two weeks, led by technology companies and auto makers, on concern profits will decline as global economic growth slows.
LG Electronics Inc, the world's No. 3 television maker, dropped 9.6 percent after consumer spending waned in the United States and South Korea's exports grew less than forecast.
Hon Hai Precision Industry Co slumped by the 6.9 percent daily limit in Taipei following its first earnings decrease in seven years.
China Merchants Bank Co lost 6.6 percent in Shanghai on concern the nation's expansion will weaken after manufacturing contracted, Bloomberg News said.
The MSCI Asia Pacific Index fell 1.8 percent to 122.99 at 5:39pm in Tokyo, poised for its largest drop since August 19. All 10 industry groups retreated.
Japan's Nikkei 225 Stock Average fell 1.8 percent to 12,834.18, paced by Kawasaki Kisen Kaisha Ltd, after prices of shipping raw materials declined and Morgan Stanley downgraded the shares. China's CSI 300 Index dropped 3.5 percent.
South Korea's Kospi Index plunged 4.1 percent, the biggest decline in the Asia Pacific region. Korean Air Lines Co fell the most in six years on concern rising oil prices and a weakening won would dent earnings. Most other regional stock indexes retreated. Europe's Dow Jones Stoxx 600 Index slipped 0.8 percent.
US markets were shut yesterday for the Labor Day holiday. Stocks retreated on Friday, paring the biggest monthly gain since April, after the Commerce Department said consumer purchases in July rose at a third of the previous month's pace, while prices surged the most in 17 years.
LG Electronics slumped 9,700 won (US$8.69) to 91,800 won, its largest drop since May 2004.
Hynix Semiconductor Inc, the world's second-largest computer-memory maker, plunged 11 percent to 17,200 won. Honda, Japan's second-largest auto maker, retreated 3.4 percent to 3,460 yen (US$32).
In China, manufacturing contracted for a second straight month in August, according to a survey of purchasing managers.
China Merchants Bank, the nation's fifth-largest bank by market value, lost 1.52 yuan to 21.56 yuan (US$3.16).