* Series of U.S. earnings misses, warnings pummel sentiment
* FX market remains sceptical about financial sector
* Healthcare sector scores with investors globally
(Updates prices, adds Hong Kong market)
By Kevin Plumberg
HONG KONG, July 22 (Reuters) - Most Asian stocks fell on
Tuesday after a landslide of lower-than-expected U.S. corporate
results sparked fears of a pullback in consumer demand, boding
ill for the region's exporters.
The U.S. dollar was steady after falling overnight as
dealers shrugged off higher-than-expected results from the top
two banks Citigroup Inc <C.N> and Bank of America Corp <BAC.N>
and continued to be sceptical about the stability of the
financial sector.
"What really matters is that we're in a bear market and
there is no reason to believe that that's going to change in
the near future," said Adnan Kucukalic, equity strategist at
Credit Suisse First Boston.
"Banks are cheap and that's a very good thing but there is
no reason for you to get into them in a hurry."
In Japan, a focus on some U.S. bank results that beat
forecasts and hopes for industrial companies lifted shares and
shed a rare glimmer of light in Asia equity markets, which are
entrenched in a bear market, down more than 20 percent from a
November all-time high.
The Nikkei share average <> jumped 1.5 percent as
trade resumed after a public holiday on Monday. Shares of Honda
Motor Co <7267.T> rose 2.6 percent and were one of the biggest
boosts to the index ahead of the company's results due on
Friday.
Outside of Japan, shares in the Asia-Pacific region slid
0.3 percent, bringing year-to-date losses to 21 percent,
according to an MSCI index <.MIAPJ0000PUS>.
Hong Kong's Hang Seng <> slipped 0.1 percent, with
clothing company Esprit Holdings Ltd <0330.HK> the top drag on
the index.
South Korea's KOSPI <> fell 0.4 percent, led by the
country's export-dependent technology sector on fears of
sharply slowing demand in the West.
Samsung Electronics stock <005930.KS> tumbled 2.7 percent
and LG Electronics <066570.KS> was down 4.85 percent after
earnings from Texas Instruments Inc <TXN.N> and SanDisk Corp
<SNDK.O> that fell short of analysts' estimates.
Credit card issuer American Express Co <AXP.N>, iPod and
computer maker Apple Inc <AAPL.O> and cruise ship operator
Royal Caribbean Cruises Ltd <RCL.N> all warned about their
results on Monday, suggesting climbing food and energy prices
and sluggish economic growth have indiscriminately hit
consumers of all income levels. []
HEALTHCARE, FINANCIAL, REAL ESTATE SECTORS BENEFIT
Investors have been yanking money out of stocks closely
tied to discretionary consumer spending and sending it to
beaten down sectors and to the healthcare sector.
Last week funds focused on the consumer goods sector had
the highest outflow of equity capital in eight months, while
healthcare and biotechnology funds had the best week in more
than 18 months, according to EPFR Global, a Boston-based
research firm that tracks $10 trillion in assets.
Financial sector and real estate sector funds, two areas
that have been battered by the year-old global credit crisis,
saw fresh money.
"U.S. officials have made it very clear they will do all
they can to keep the transmission lines open between the
financial sector and home-buyers, reinforcing the belief among
a significant number of investors that these sectors --
financials and real estate -- have been oversold," said Cameron
Brandt, EPFR Global senior analyst, in a note.
Investors around the world have been gradually shifting
their focus to growth prospects from inflation pressures, now
that the downturn in global stock markets which started in
November has lopped off $10.3 trillion in total market
capitalisation, according to Morgan Stanley.
One of the most important factors in the outlook for the
global economy is the price of oil, having risen 73 percent in
the last 12 months.
Oil pared some of the previous session's gains as Tropical
Storm Dolly looked likely to miss major U.S. oil and gas
production facilities, easing fears of supply disruptions from
the first big storm threat of 2008.
U.S. light crude <CLc1> fell 29 cents to $130.75 a barrel
after gaining more than $3 a barrel on concerns over Dolly in
the previous session.
The euro was trading around $1.5930 <EUR=>, about a cent
below an all-time high touched last week. Against the yen, the
dollar was down 0.1 percent at 106.35 yen <JPY=>.
Dealing in five derivatives, including Japanese government
bond futures and TOPIX futures, was halted early on Tuesday due
to a technical glitch but would resume at 0445 GMT, the Tokyo
Stock Exchange said.
(Additional reporting by Geraldine Chua in Sydney)
(Editing by Kim Coghill)
