Jan. 30 (Bloomberg) -- Asian stocks fell, led by South Korean shipbuilders and Japanese power producers, on concern slowing global growth and rising fuel costs will erode earnings.

Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. plunged after Macquarie Group Ltd. recommended selling shares in the world's two largest shipyards. Kyushu Electric Power Co. tumbled the most in more than six years after cutting its profit forecast. HSBC Holdings Plc and Bank of China Ltd. retreated after UBS AG reported a record loss on about $14 billion of writedowns related to subprime mortgages.

``The U.S. economy is slowing down and to what extent is that affecting Asia?'' said Peter Hames, who manages $30 billion at Aberdeen Asset Management Ltd. in Singapore. ``Investors hate uncertainty and hence volatility in markets.''

The MSCI Asia Pacific Index lost 1.4 percent to 141.33 at 7:04 p.m. in Tokyo, reversing an earlier gain of 0.8 percent. The benchmark is set for its worst month since September 2001. South Korea's Kospi Index fell 3 percent, the region's biggest decline.

Japan's Nikkei 225 Stock Average dropped 1 percent to 13,345.03. Hong Kong's Hang Seng Index slumped 2.6 percent. All other Asian benchmarks retreated apart from the Philippines, Thailand and Vietnam. Indonesia was little changed.

China Life Insurance Co. retreated after Bear Stearns & Co. said a slumping Chinese stock market will lower insurers' investment returns. Samsung Electronics Co. and Hynix Semiconductor Inc. gained after UBS AG raised its targets. Shipping companies advanced after Credit Suisse Group boosted its stock rating on Nippon Yusen K.K.

Rate Cut

The U.S. Standard & Poor's 500 Index added 0.6 percent yesterday. The Federal Open Market Committee, ending a two-day meeting today, will probably cut interest rates by half a percentage point to 3 percent, according to more than half of economists surveyed by Bloomberg News. That would follow an emergency cut of three-quarters of a point on Jan. 22.

Hyundai Heavy plunged 10 percent to 286,000 won, the most since Sept. 12, 2001. Samsung Heavy slumped 10 percent to 25,400 won, its lowest level since April 5.

Macquarie cut ratings on South Korea's shipyards to ``underperform'' from ``outperform'' and reduced share-price estimates by as much as 70 percent.

``Banks, suffering from huge losses related to subprime mortgages, have turned more cautious in their lending policies to shipping and charter companies,'' Macquarie analyst E.S. Kwak wrote in a report dated yesterday. Shipping companies ``are likely to be less aggressive in placing new vessel orders.''

Hyundai Mipo

Daewoo Shipbuilding & Marine Engineering Co. the world's third-largest maker of ships, dropped 12 percent to 30,000 won, its biggest decrease since Aug. 16. Hyundai Mipo Dockyard Co., which reported a 12 percent decline in fourth-quarter profit yesterday, lost 15 percent to 171,500 won, its steepest drop since May 2004.

Kyushu Electric, Japan's fourth-largest power producer, slumped 5.5 percent to 2,650 yen, its biggest drop since November 2001, after slashing its net income projection by 23 percent on rising fuel costs. Tokyo Electric Power Co. fell 1.4 percent to 2,770 yen, after Asia's biggest utility said it expects a wider annual loss.

China Life, the nation's largest insurer, dropped 7.4 percent to HK$29. Ping An Insurance (Group) Co., the No. 2, declined 6.5 percent to HK$57.40, its lowest close since July 9.

Bear Stearns reduced its rating on China's insurers to ``market weight'' from ``overweight,'' citing lower returns from investments in China's stock market. The nation's benchmark CSI 300 Index has fallen 12 percent this year, after rising 162 percent in 2007.

`Reduced Returns'

For insurers, ``their marginal growth of investment returns will be reduced,'' said John Schofield, director at Tempus Investment Research Ltd. in Hong Kong.

HSBC, Europe's No. 1 bank by market value, dropped 0.4 percent to HK$117.10, reversing an earlier gain of as much as 1.5 percent. Bank of China, which has the largest subprime-related holdings among Asian banks, slid 1.8 percent to HK$3.27.

UBS, Europe's largest bank by assets, posted a fourth- quarter net loss of 12.5 billion Swiss francs ($11.4 billion), almost double what analysts surveyed by Bloomberg were estimating. BNP Paribas SA, France's largest bank, reported a 42 percent decline in fourth-quarter profit today after 589 million euros ($871 million) of credit costs.

Samsung Electronics, the world's biggest computer-memory maker, advanced 2.3 percent to 571,000 won, the biggest contributor to gains on MSCI'S Asian index. Hynix, the No. 2, climbed 3.4 percent to 26,100 won.

UBS analysts lifted their price estimate on Samsung by 2 percent, citing ``anticipated stronger'' chip prices, and recommended investors buy shares in Hynix, according to a report published today.

Shipping Companies

Nippon Yusen, Japan's largest shipping line, gained 4 percent to 858 yen, its highest since Jan. 9. Mitsui O.S.K. Lines Ltd., the No. 2 shipping company in Japan, advanced 5.9 percent to 1,304 yen, completing its steepest gain since May 21. Evergreen Marine Corp., Asia's largest container line, advanced 2.4 percent to NT$24 in Taipei.

Credit Suisse Group raised its stock rating on Nippon Yusen to ``outperform'' from ``neutral'' after the Tokyo-based company increased its profit forecast.

ABS-CBN Broadcasting Corp., the largest Philippine television and radio-network operator, tumbled 11 percent to 25.50 pesos, the most since July 2005, on speculation it lost market share against rival GMA Network Inc.

Emeco Holdings Ltd., an Australian earthmoving company, tumbled 24 percent to 71 Australian cents, the biggest drop on record, after saying full-year profit may be lower than last year.

To contact the reporter on this story: Chua Kong Ho at in Shanghai or kchua6@bloomberg.net; Michele Batchelor at in Singapore or mbatchelor@bloomberg.net

Last Updated: January 30, 2008 05:05 EST