Asian stocks fell from a seven-week high, with benchmarks in Australia and South Korea retreating from records. BHP Billiton and China Life Insurance Co, drivers of the recent rally, led declines.

"Investors are stepping back and waiting for the next indicators, whether it's corporate earnings or economic numbers, before going back in," said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co, which manages about US$360 billion worldwide.

Sumitomo Mitsui Financial Group Inc, Tokyo Electric Power Co and East Japan Railway Co paced declines in Japan on concern earnings forecasts from companies reliant on domestic demand will disappoint, Bloomberg News said.

Japan's Nikkei 225 Stock Average and the broader Topix index both lost 0.6 percent. Declines were limited after Goldman, Sachs & Co raised its ratings on Tokyo Electron Ltd and Nikon Corp, pushing shares of semiconductor-equipment makers higher.

The Morgan Stanley Capital International Asia-Pacific Index lost 0.1 percent to 147.69 as of 7:11pm in Tokyo. The measure earlier gained as much as 0.6 percent to 148.63, just shy of the record close of 148.69 set on February 27.

Key indexes in China and Singapore extended records, while Philippine stocks posted the biggest gains in the region after overseas workers sent more money home. Concern that currency appreciation will hurt exporters contributed to declines in India and South Korea.

The 14-day relative strength index for measures in Malaysia and South Korea yesterday climbed above 70, the level that indicates to some analysts that prices are set to fall. The reading for Australia's benchmark was at 67.

BHP Billiton, the world's biggest mining company, slipped 1.1 percent to A$30.06 (US$25.20).

China Life, the nation's No. 1 insurer, slumped 2.1 percent to HK$25.15 (US$3.22), paring its gain in the past month to 20 percent. The stock's relative strength index on Monday had a reading of 79. Hyundai Heavy Industries Co, the world's largest shipbuilder, slid 3.5 percent to 209,000 won (US$225)

"We don't expect any upside surprises from either macroeconomic or earnings fronts," said Stella Lau, head of Bank of East Asia Ltd's investment department in Hong Kong. "Good results are already expected."

Sumitomo Mitsui Financial, Japan's third-biggest lender by assets, lost 1.8 percent to 1.1 million yen (US$9,222). Tokyo Electric, Asia's biggest power producer, slid 0.5 percent to 4,100 yen. East Japan Railway, the nation's No. 1 rail operator, declined 1.2 percent to 988,000 yen.

Tokyo Electron, the world's second-biggest supplier of chipmaking equipment, jumped 3.6 percent to 8,880 yen.