Asian Stocks Finish Mostly Lower

Updated from 3:05 a.m. EDT

By Jeremiah Marquez

HONG KONG -- Asian stocks ended mostly lower Monday as weak company earnings led investors to ratchet down hopes for a global recovery, but India's index vaulted 17% after election results paved the way for economic reforms.

Tokyo shares were hardest hit after two of Japan's leading companies -- Panasonic(PC Quote) and Mizuho Financial (MFG Quote) -- reported colossal losses for the last fiscal year. The strengthening yen hurt the country's major exporters. Oil firms, meanwhile, sank along with crude prices.

But India provided a bright spot, its shares surging in early trading as results of national elections boosted confidence about the government's stability and ability to enact long-awaited reforms.

Losses across most of Asia followed Wall Street and came after global markets ended last week mostly higher. One catalyst was the still-dreary outlook for the world's largest economy highlighted by ugly U.S. retail and housing figures. Plummeting Chinese exports and foreign investment didn't help matters.

Investors have jumped into stocks since early March as the rate of deterioration in the world economy eased somewhat.

Analysts say a correction is healthy after such a steep climb. At the same time, expectations are rising for evidence of growth in economies and corporate earnings, not just slower declines.

"We need to see more signs of demand actually picking up and the economy improving. Without that, we're going to trade in a range or see more selling," said Yoji Takeda, who helps manage $1 billion in assets at RBC Investment Management in Hong Kong.