TOKYO, Oct 3 (Bloomberg): Asian stocks fell by the most in six weeks on concern a seven-month rally has outpaced the prospects for an economic recovery.

Mitsubishi UFJ Financial Group Inc., Japan's largest listed bank, fell 9.7 per cent after booking charges for an affiliate. Toyota Motor Corp., which gets 31 per cent of sales from North America, sank 8.9 per cent as it reported a decline in U.S. sales, and U.S. manufacturing and unemployment claims missed economists' estimates. Glorious Property Holdings Ltd., a real- estate developer, sank 15 per cent in its trading debut yesterday in Hong Kong, the fifth new listing in two weeks to plunge.

The MSCI Asia Pacific Index fell 2.8 per cent to 114.46 this week, its biggest drop since the week ended Aug. 21. The gauge has climbed 62 per cent from a five-year low on March 9 as stimulus measures worldwide dragged economies out of recession. It has dropped 3.7 per cent from a one-year high on Sept. 17.

"There seems to be growing consensus that the pace of the recovery will slow," said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees the equivalent of $56 billion. "There is a question mark over a further rebound in consumption and production."

Japan's Nikkei 225 Stock Average slumped 5.2 per cent to 9.731.87, its first weekly close below 10,000 since July 24. Japanese large enterprises plan to cut capital spending by 10.8 per cent in the year ending next March, more than the 9.4 per cent reduction foreseen three months ago, according to the Bank of Japan's quarterly Tankan survey released on Oct 1. Economists estimated a 9 per cent decrease.

China's benchmark Shanghai Composite Index dropped 2.1 per cent in a shortened trading week. The market was shut from Oct. 1 for the National Day holidays. Trading resumes Oct. 9.

Glorious Property dropped 15 per cent to HK$3.76 yesterday, its first day of trading. The company had raised HK$9.9 billion ($1.28 billion) in the largest initial public offering in Hong Kong by a Chinese property company in two years.

The developer joins four other companies, including China South City Holdings Ltd., in falling on their first day of trading over the past two weeks. The declines have heightened investors' concerns that the market's appetite for offerings is waning. China South, which debuted on Sept. 30, dropped 25 per cent since its IPO.

"It's a massacre," said Francis Lun, general manager at Hong Kong-based brokerage Fulbright Securities Ltd. "Right now investors have lost all confidence in new shares and I can't see this changing in the near term."

Hong Kong Exchanges & Clearing Ltd., the operator of Asia's third-biggest stock market, declined 6.3 per cent to HK$134.10 on speculation companies may be postponing listing plans due to the poor reception recent offerings have received.

Wilmar International Ltd., the world's biggest palm-oil trader, sank 9.5 per cent to S$6.11 in Singapore after FinanceAsia reported on its Web site that Wilmar China Ltd.'s initial public offering in Hong Kong has been delayed.

Mitsubishi UFJ declined 9.7 per cent to 445 yen. The company will book a 28 billion yen ($313 million) charge on its stake in Acom Co., whose shares plunged 50 per cent in the six months through Sept. 30.

The stronger yen and won dragged down shares of Japanese and South Korean exporters. The yen strengthened to as much as 88.24 per dollar this week from 90.65 at the close of Tokyo trading last week.