Asia stocks fall on global growth fears

By Kevin Plumberg

HONG KONG (Reuters) - Asian stocks fell on Wednesday, with regional shares outside of Japan hitting a 17-month low, on the growing risk of a sharp global economic slowdown.

The dollar hovered near six-month highs against a basket of major currencies, with investors watching oil and stock markets for direction.

Data showing Japan's economy contracted in the second quarter added to a sense of unease about growth prospects and reinforced concerns that the world's second-largest economy may have slipped into a recession.

Also, credit woes showed no signs of ending after a year, with JPMorgan Chase (JPM.N), the No.3 U.S. bank, saying on Tuesday it chalked up $1.5 billion in losses so far this quarter on mortgage-related assets.

That weighed on U.S. shares overnight.

"Fresh credit worries and the subsequent share falls on Wall Street are weighing on sentiment," said Hwang Geum-dan, a market analyst at Samsung Securities in Seoul.

"Despite oil's falls, investors remain cautious as concerns about fundamentals such as economies and corporate earnings pervade the markets."

Japan's Nikkei share average .N225 fell 2.2 percent, led lower for a second day by shares of clothing company Fast Retailing (9983.T).