Asian stocks dropped, dragging the MSCI Asia Pacific Index to its biggest weekly decline in a month, after Nomura Holdings Inc. said it will sell new shares and sales of existing homes unexpectedly declined in the U. S.

Sales of existing U. S. homes unexpectedly fell last month for the first time since March, signaling the housing recovery will be slow to gain speed. Purchases dropped 2.7% in August to a 5.1 mn annual rate, the second? highest level in the last 23 months, the National Association of Realtors said today in Washington. Existing home sales were forecast to rise to a 5.35 mn annual rate, according to the median forecast of 74 economists in a Bloomberg News survey. Separately, the Federal Reserve said it will cut the size of two programs meant to boost credit markets.

Figures from the Labor Department in US yesterday showed that the number of Americans seeking unemployment benefits unexpectedly dropped last week to the lowest level in two months, signaling the job market is healing. Claims fell to 530,000 from 551,000 the prior week.

Benchmark indexes rose in early trading after an unexpected decrease in jobless claims bolstered speculation that the economy is emerging from the worst recession in seven decades.

U. S. stocks fell for a second day as sales of existing homes unexpectedly slumped and the Federal Reserve said it will cut the size of two programs meant to bolster credit markets. Oil tumbled to a one? month low as the dollar strengthened, while Treasuries rose. Treasury Secretary Timothy Geithner said Group of 20 nations have a "strong consensus" to reduce reliance on exports, and he reiterated the U. S. has a "special responsibility" to ensure the dollar stays the world's reserve currency. "A strong dollar is very important in the United States," Geithner said in response to a question at a press conference today in Pittsburgh, where G? 20 leaders begin two days of talks.

The Group of 20 nations today will conclude a two? day meeting in Pittsburgh on measures to help prevent the risk? taking that triggered the worst financial crisis since the Great Depression.