Nikkei: 9,097.56 (-202.32) Hang Seng: 20,490.57 (-455.57) Shanghai Comp: 2,526.82 (-99.61):ASIAN STOCKS fell, leading the regional benchmark index toward its lowest close in almost a year and driving Australia's key gauge into a so-called bear market after Standard and Poor's cut the US credit rating, fuelling concern a global economic recovery is faltering.

Some banks in the region pared losses after the Group of Seven nations pledged to support financial stability.

The MSCI Asia Pacific Index, which last week entered a so- called correction after falling more than 10 per cent from its May peak, slumped 2.5 per cent to 122.97 in Tokyo, on course for the lowest close since September 10th, 2010.

About 12 times as many stocks declined as advanced on the gauge.

Some banks earlier rebounded after the Group of Seven nations pledged to take “all necessary measures to support financial stability and growth” and members agreed to inject liquidity and act against disorderly currency moves if necessary.

Li and Fung sank 2.2 per cent to HK$11.78.

Sony slumped 3.8 per cent to 1,759 yen in Tokyo, while Toyota slid 1.6 per cent to 2,993 yen. – (Boomberg)