Stock markets in Asia Pacific fell on Tuesday led by the financial sector. Investors worried that economic growth would slow and profits would be reduced by continued turmoil related to the credit crisis. Oil dropped by more than a dollar to below $112 a barrel in Asian trading, but shares felt little benefit from cheaper energy. Australian shares made the biggest losses, and Japanese stocks were not far behind, dropping to a one-month low.

Pakistan was the region’s best performer as investors digested the implications of Pervez Musharraf’s decision to step down as president on Monday. The Karachi Stock Exchange 100 index gained 1.9 per cent to 10,919.01.