Asian stocks declined, dragging the regional benchmark index from a three? month high, on speculation companies will take advantage of a six? week rally to sell shares and shore up their finances. MSCI Asia Pacific Index has rallied 26 percent from a more than five? year low reached on March 9, taking valuations to the highest since November 2007. The Bank of Japan will probably cut its forecasts for the economy and prices next week as the recession takes a toll on spending by companies and households. The world's second? largest economy will probably contract 4.2 percent in the year to March 2010, more than twice the pace the central bank projected three months ago, according to the median estimate of 16 economists surveyed by Bloomberg News.

The euro weakened to a one? month low against the dollar on concern policy disagreements within the European Central Bank will undermine efforts to help the region's economy recover.

Orders for U. S. durable goods and home sales probably retreated in March after rebounding the previous month, showing any economic recovery will be slow to develop, economists said before reports this week. Combined sales of new and existing homes likely decreased to a 5.02 million annual rate, down from a 5.06 million pace in February.

Federal Reserve Chairman Ben S. Bernanke last week said the economy's "sharp decline" may be slowing, and President Barack Obama cited "glimmers of hope" as the stimulus package and policy measures start to take hold.

Citigroup Inc., the U. S. bank rescued by $45 billion in U. S. taxpayer funds, ended a five? quarter losing streak with a $1.6 billion profit on trading gains and an accounting benefit for companies in distress. On a per? share basis, the bank reported an 18? cent loss because of costs related to preferred dividends. The first? quarter profit compared with a net loss of $5.11 billion, or $1.02 a share, a year earlier.

China's 4 trillion yuan ($585 billion) stimulus plan has shown "betterthan? expected" results in reviving growth in the world's third? largest economy and helped restore market confidence.

India postponed its largest auction of oil and gas fields on concern that the absence of a tax break for natural gas production will keep domestic and overseas bidders away. "The confusion over the tax holiday for gas continues and that needs to be resolved," Oil Minister Murli Deora said by telephone today.