The forecast comes less than two months after the company predicted a strong increase in earnings

Japan’s Nikkei 225 Stock Average (NKY) declined 1.3 percent. Australia’s S&P/ASX 200 fell 2.4 percent. Hong Kong’s Hang Seng moncler jackets slipped 2 percent and China’s Shanghai Composite Index slid 1.8 percent.

Losses deepened after Yonhap News reported that Kim Jong Il, the second-generation North Korean dictator, died at age 70. South Korea’s Kospi Index sank 3.4 percent.

Futures on the Standard & Poor’s 500 Index (SPXL1) lost 0.7 percent today. The index rose 0.3 percent in New York on Dec. 16 as gains by commodity producers overshadowed concerns about the European debt crisis. Fitch Ratings put credit ratings for France, Belgium, Spain, Slovenia, Italy, Ireland and Cyprus under review for a downgrade, saying a “comprehensive” solution to Europe’s crisis is “technically and politically beyond reach.”

“Europe’s situation continues to be tough,” said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. “We are likely to see more downgrades for government debt and banks. Stocks (MXAP) will take a hit every time that happens.”
Europe Meeting

Shares of financial companies and exporters to Europe dropped on concern their earnings will decline as the region’s sovereign-debt crisis spreads. Finance ministers in the euro region are holding a conference call at 3:30 p.m. Brussels time today to meet a self-imposed deadline to channel additional bailout funds and put together new budget rules to stem the debt crisis and buoy investor confidence.

HSBC fell 2.9 percent to HK$57.15 moncler in Hong Kong. Westpac Banking Corp. (WBC), Australia’s second-biggest lender, dropped 2.2 percent to A$20.05 in Sydney. Samsung Electronics slid 3.6 percent to 1.007 million won Seoul.

Stocks extended losses today even after the U.S. Congress passed a $1 trillion spending bill to avert a government shutdown.
China Home Prices

Chinese developers declined as China’s home prices posted the worst performance this year, with more than half of the 70 biggest cities monitored in November recording declines after the government reiterated plans to maintain property curbs.

China Overseas Land & Investment Ltd. (688), the biggest mainland homebuilder listed in Hong Kong, sank 4.2 percent to HK$13.72 in Hong Kong. China Resources Land Ltd. (1109), a state-owned developer, dropped 4.5 percent to HK$12.42. Agile Property Holdings Ltd. (3383), a real-estate company partly owned by JPMorgan Chase & Co., fell 4.2 percent to HK$6.59.

The MSCI Asia Pacific Index lost 18 percent this year through last week, compared with a 3 percent drop by the S&P 500 and a 15 percent loss by the Stoxx Europe 600 Index. Stocks in the Asian benchmark are valued at 12.5 times estimated earnings on average, compared with 12.3 times for the S&P 500 and 10.2 times for the Stoxx 600.

Billabong tumbled 44 percent to A$2.03, poised for its biggest decline on record, after saying first-half profit may fall by as much as 26 percent as sales stalled in three key markets, including Australia, Europe and North America. The forecast comes less than two months after the company predicted a strong increase in earnings.

Gauges of raw-material producers cheap moncler jackets for men and energy companies posted the biggest decline among the 10 industry groups in the MSCI Asia Pacific Index. Crude oil futures traded near a six- week low in New York. Copper, zinc and nickel declined for the first time in three days.