SINGAPORE (Bloomberg) -- Asian stocks declined for the first time in three days, led by technology companies and automakers, after a U.S. jobs report renewed concern that growth in the world’s largest economy is slowing.

LG Display Co., the world’s second-largest maker of liquid- crystal displays, retreated in Seoul after the report showed new claims for unemployment benefits unexpectedly rose. Matsushita Electric Industrial Co., the maker of Panasonic-brand electronics, dropped in Tokyo after brokerages downgraded the stock. Toyota Motor Corp. fell as Goldman, Sachs & Co. lowered its rating on Japan’s auto industry.
The MSCI Asia Pacific Index lost 0.5 percent to 144.58 as of 2:30 p.m. in Tokyo, ending a two-day, 4.8 percent rally. The benchmark gained 1.9 percent this week, on course for its first back-to-back advance since December. The index is still down 8.4 percent this year on concern the U.S. will enter a recession as mortgage-related losses widen at banks and brokerages.
“The jobs data show that the U.S. economy is in a precarious state and that it’s in worse shape than what optimists are hoping for,” said Paul Garcia, who helps manage $1.8 billion in Manila as chief investment officer for the Philippines at ING Investment Management. “Financial markets will be choppy as long as the economic data is weak.”
Federal Reserve Chairman Ben S. Bernanke this week acknowledged for the first time that a recession is possible in the U.S., the largest market for Asian exports. Economists expect a government report on Friday to show that the U.S. lost jobs for a third month in March.
----------------------------------Unemployment claims
Japan’s Nikkei 225 Stock Average fell 1.1 percent to 13,344.18, led by steelmakers, after Tokyo Steel Manufacturing Co. said it will stop exports. About half of Asia’s benchmarks fell on Friday. China, Hong Kong and Taiwan are shut for holidays.
U.S. stocks rose, helped by a rally in commodity producers and after Merrill Lynch & Co. assured investors it has enough capital to weather credit losses.
LG Display fell 1.6 percent to 46,250 won. Sony Corp., the world’s second-biggest maker of consumer electronics, dropped 2.1 percent to 4,260 yen. The company counts the U.S. as its largest single market.
Matsushita, the world’s largest maker of consumer electronics, fell 2.9 percent to 2,160 yen. The shares were cut to “underweight” from “equal-weight” at Morgan Stanley and lowered to “neutral” from “overweight” at HSBC Holdings Plc.
------------------------------------------Rating cuts
Toyota, Japan’s biggest automaker, fell 3.3 percent to 4,990 yen, while Honda Motor Co., the country’s No. 2 carmaker, slumped 4.4 percent to 2,945 yen. The two stocks were the biggest drags on MSCI’s Asian benchmark. Nissan Motor Co., the third-largest, dropped 4.3 percent to 852 yen.
Goldman Sachs cut its recommendation for Japan’s car industry to “cautious” from “neutral.” The brokerage joins Nomura Securities Co. and Morgan Stanley this week in reducing their outlooks for the industry, on speculation a slump in auto sales will continue.
Fuji Electric Holdings Co., a Japanese electric machinery maker, plunged 9.7 percent to 383 yen, the steepest decline on MSCI’s Asian benchmark. The stock was cut to “neutral” by Yoshiharu Izumi, an analyst at JPMorgan Chase & Co., who had held an “overweight” rating on the shares since March 2005.
Tokyo Steel, Japan’s biggest maker of steel girders, lost 2.5 percent to 1,420 yen. The company said it stopped exports because a strengthening yen and record raw material prices eroded profitability on overseas sales.
---------------------------------------Record corn, rice
A measure of steelmakers on the Topix index dropped 3.5 percent, the second-largest decline among the benchmark’s 33 industry groups. Nippon Steel Corp., the world’s second-biggest steelmaker, fell 4.2 percent to 520 yen, while JFE Holdings Inc., the third-largest, lost 4.2 percent to 4,570 yen.
Declines were capped after copper and gold prices rose for a second day in New York. BHP Billiton Ltd., the world’s largest mining company, added 1.3 percent to A$38.60 in Sydney, its highest close since March 7. Newcrest Mining Ltd., Asia’s largest gold producer by market value, increased 0.5 percent to A$33.60.
Meanwhile, the cost of corn and rice advanced to records, leading gains among agricultural commodities, on speculation global demand will outstrip supply.
AWB Ltd., Australia’s largest wheat exporter, added 2.2 percent to A$2.76. Wilmar International Ltd., the biggest vegetable oil supplier to China, advanced 1.6 percent to S$4.39 in Singapore.