Asian Stocks Add to Global Rout After China's Slump; Sony Drops (Darren Boey and Stuart Kelly)

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Asian stocks extended a global selloff sparked by the biggest plunge in Chinese shares in a decade.

By Darren Boey and Stuart Kelly

Feb. 28 (Bloomberg) -- Asian stocks fell the most in more than eight months, extending a global selloff sparked by the biggest plunge in Chinese shares in a decade. Sony Corp. and BHP Billiton Ltd. led declines.

Japan's Nikkei 225 Stock Average was set for its biggest slide since June, while Hong Kong's Hang Seng Index was heading for its largest decline in nine months. The Shanghai and Shenzhen 300 Index in China, Asia's second-largest economy, fell 0.3 percent, extending yesterday's 9.2 percent slump.

``Any fallout in the Chinese economy will ultimately affect many companies worldwide,'' said Shane Oliver, who helps manage $64 billion at AMP Ltd. in Sydney. Local Chinese investors ``own the overwhelming majority of shares there. Foreigners are mainly targeting other Asian markets where they have substantially more holdings.''

The Morgan Stanley Capital International Asia-Pacific Index fell 3.5 percent to 143.56 at 12:13 p.m. in Tokyo after rising to a record yesterday. The gauge was set for its biggest drop since June 13, as was the Nikkei 225, which slumped 3.6 percent.