By Kevin Plumberg

HONG KONG (Reuters) - Asian stocks dropped on Tuesday, snapping a six-day rise, weighed down by retailers and property companies as the relentless climb in oil prices fuelled inflation fears.

U.S. oil was trading above $127 a barrel on Tuesday after a record close on Monday, supported after OPEC President Chakib Khelil said the cartel would not increase output at its next meeting in September.

Oil has risen around 33 percent since the year began. Higher energy costs have spread fear among investors that consumers and businesses around the world would reel in their spending at a time when the global economy is slowing.

Shares in Europe were also expected to head lower, with financial bookmakers forecasting the main index in London would open down 22-28 points, Germany down 21-28 points and French shares down 6-25 points.

Safe-haven U.S. Treasuries climbed and the Swiss franc, which often benefits in times of market volatility, strengthened.

Hong Kong's Hang Seng index .HSI was down 1.9 percent, or 498.7 points, at 25247.28, and stocks in the territory were among the region's biggest decliners.

China Mobile (0941.HK: Quote, Profile, Research), the world's largest mobile cellular carrier by users, was down 2.15 percent after it said subscriber growth had slowed in April.

Australia's benchmark S&P/ASX 200 index was off 45.3 points, or 0.8 percent, at 5,904.1. Macquarie Group Ltd. (MQG.AX: Quote, Profile, Research), Australia's biggest investment bank, was one of the biggest drags on the index after it said it faced a challenging year.