Asian Stocks Drop on U.S. Economic Growth Concern

Asian stocks fell for second day, led by Toyota Motor Corp. and AU Optronics Corp., after reports in the U.S. pointed to slower growth in the world's biggest economy.

Bank of China Ltd. slumped as the country's shares, the catalyst for a global rout this week, extended declines from records on concern they are too expensive relative to earnings. Taiwan's benchmark fell by the most in more than six months as investors returned from a national holiday to join the selloff.

The Morgan Stanley Capital International Asia-Pacific Index fell 0.7 percent to 143.22 at 6:25 p.m. in Tokyo, adding to yesterday's 3 percent slump. It was its biggest two-day loss since June 13, as a retreat globally wiped out more than $1 trillion of stock-market value.

``Market gains had been very fast up until now, when in fact there were plenty of things to be cautious about such as the slowdown in the U.S. and a correction in Chinese stocks,'' said Masayuki Kubota, who oversees $2.1 billion in assets at Daiwa SB Investments Ltd. in Tokyo.

Softbank Corp. led Japan's Nikkei 225 Stock Average to a 0.9 percent decline after CLSA Asia Ltd. said the company may restate its financial accounts. Indexes fell in Australia, Malaysia, Hong Kong and Singapore. South Korea is closed today. The Philippine Stocks Exchange Index rebounded 4 percent, the region's biggest gain, after yesterday's 7.9 percent plunge.

The Dow Jones Industrial Average added 0.4 percent in New York, while the Standard & Poor's 500 Index rallied 0.6 percent. Federal Reserve Chairman Ben S. Bernanke said there appeared no ``single trigger'' for the rout in stocks and that there was a ``reasonable possibility'' the U.S. economy will strengthen.