STOCKS NEWS ASIA-U.S. stagflation fear to hit shares

SYDNEY, May 22 (Reuters) - Asian stocks look set to fall on
Thursday, after the U.S. Federal Reserve's warning about
possible higher inflation and a weaker economy sparked fears
the world's biggest economy faces stagflation, sending Wall
Street tumbling.

Airline stocks such as Korean Air (003490.KS: Quote, Profile, Research) are likely to
be hit after oil CLc1 climbed to a fresh record over $134 a
barrel, though energy firms such as Australia's Woodside
Petroleum Ltd (WPL.AX: Quote, Profile, Research) may rise.

On Wednesday, The U.S. Federal Reserve cut its 2008 U.S.
economic growth forecast and signalled that mounting concerns
over inflation would make further interest rate cuts unlikely,
driving the three major U.S. indexes down over 1.5 percent.

Asian stocks listed on Wall Street .BKAS fell 1.6 percent
overnight, while the MSCI's measure of Asia Pacific stocks
excluding Japan .MSCIAPJ slipped 0.3 percent on Wednesday.

HEADLINES: > Stagflation fears send U.S. stocks sharply
lower [nN21510117] > Fed lowers growth forecast, raises
inflation
[nN21438129] > Oil surges over $134 on supply woes, weak
dollar [nSP114922] > American Airlines to slash jobs, charge
for bags [nN21393025] > Study cites Pfizer smoking drug risk,
shares fall [nN21441870] > Moody's launches inquiry after
rating error report[nL21227829] > Ex-AIG chief Greenberg may
face SEC charges [nBNG303712] > Study cites Pfizer
smoking drug risk, shares fall [nN21441870] > BJ's net rises,
but second-half outlook uncertain [nN21378892] > Talbots
operating earnings top view, shares jump [nN21381199] >
ArcelorMittal buys $600 mln Macarthur Coal stake [nSYD84982]
> Honda to launch cheap new hybrid in early '09 [nT345972]
> Sycamore, Chinese govt start $1 billion green
fund[nPEK147592] > PetroChina, Sinopec climb on talk of Beijing
aid [nHKG139110]

KEY INDEXES pct change

Bank of New York Asia ADR index .BKAS -1.61

Dow Jones Industrial Average .DJI -1.77

Nasdaq Composite Index .IXIC -1.77

MSCI Asia Pacific ex-Japan .MSCIAPJ -0.31

Nikkei futures in Chicago 2NKc1 -1.82

Nikkei futures in Osaka JNIc1 +0.43

ASIAN ADR ACTION:

5 most actively traded: price change/pct

TSMC (TSM.N: Quote, Profile, Research)(2330.TW: Quote, Profile, Research) -0.98

Infosys Tech (INFY.O: Quote, Profile, Research)(INFY.BO: Quote, Profile, Research) -0.90

UMC (UMC.N: Quote, Profile, Research)(2303.TW: Quote, Profile, Research) -0.57

Siliconware (SPIL.O: Quote, Profile, Research)(2325.TW: Quote, Profile, Research) -0.70

BHP Billiton (BHP.N: Quote, Profile, Research)(BHP.AX: Quote, Profile, Research) -0.90

Top 5 performers: price change/pct

CNOOC (CEO.N: Quote, Profile, Research)(0883.HK: Quote, Profile, Research) +5.56

Kubota Corp. (KUB.N: Quote, Profile, Research)(6326.T: Quote, Profile, Research) +5.50

Huaneng Power (HNP.N: Quote, Profile, Research)(0902.HK: Quote, Profile, Research) +4.88

Metal Storm (MTSX.O: Quote, Profile, Research)(MST.AX: Quote, Profile, Research) +4.75

James Hardie (JHX.N: Quote, Profile, Research)(JHX.AX: Quote, Profile, Research) +3.84

Bottom 5 performers: price change/pct

POSCO (PKX.N: Quote, Profile, Research)(005490.KS: Quote, Profile, Research) -5.38

China Eastern (CEA.N: Quote, Profile, Research)(0670.HK: Quote, Profile, Research) -5.35

HDFC Bank (HDB.N: Quote, Profile, Research)(HDBK.BO: Quote, Profile, Research) -5.20

China Southern (ZNH.N: Quote, Profile, Research)(1055.HK: Quote, Profile, Research) -4.86

ICICI Bank (IBN.N: Quote, Profile, Research)(ICBK.BO: Quote, Profile, Research) -4.76

TOP ASIA EVENTS:

For more Asian company earnings, see [ASIA/EQTY]

JAPAN - A meeting of economic policymakers to approve
the government's monthly economic report, followed by Economics
Minister Hiroko Ota news conference

SYDNEY - James Hardie (JHX.AX: Quote, Profile, Research) full-year results

- Sigma Pharmeceuticals Ltd (SIP.AX: Quote, Profile, Research) annual
meeting

TAIPEI - Statistics agency announces Q1 GDP
(Reporting by Geraldine Chua; Editing by Anshuman Daga)