RPT-GLOBAL MARKETS-Asian stocks sink on inflation, credit fears

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* Asia stocks fall after oil spikes $5 overnight

* Financial sector hurt by report Lehman needs more capital

* Investors prepare for higher borrowing costs

By Kevin Plumberg

HONG KONG, June 12 (Reuters) - Asian stocks fell on Thursday after oil prices jumped $5 to near record highs on a report showing four weeks of tightening supply, adding to fears about rising inflation around the world.

Financial companies, such as Sumitomo Mitsui Financial Group (8136.T) and National Australia Bank (NAB.AX), were under fire, after a report that U.S. investment bank Lehman Brothers LEH.N could hunt for more capital after already raising $6 billion, raising questions about the company's management. [nN11469030]

Meanwhile, oil's unrelenting climb has made investors nervous about higher borrowing costs, especially after Federal Reserve Chairman Ben Bernanke earlier this week said the recent rise in oil has increased the chances that inflation pressures will grow.

"Inflation worries are heightening the possibility that central banks, including those of South Korea and the United States, will raise key interest rates in the near future," said Y.S. Rhoo, a market analyst at Hyundai Securities.

Japan's Nikkei share average fell 2.3 percent to the lowest level in two weeks. Exporters with high-profile brands overseas were some of the heaviest hit, such as Canon Inc (7751.T) and Honda Motor Co. (7267.T).

Korea's KOSPI declined 1.3 percent , led by POSCO Co Ltd (005490.KS), the world's fourth largest steelmaker.

Stocks in Singapore fell 1.8 percent .FTSTI, following the decline on major U.S. indexes.

Investors will focus on an Australian employment report due at 0130 GMT and a policy decision from the Bank of Korea due at 0230 GMT. Several central banks in the region, including China, India, Indonesia and the Philippines, have begun to tighten monetary policy to fight upward pressure on prices.

U.S. light crude prices were up 16 cents to $136.54 CLc1 after rising around $5 overnight, less than $3 from the all-time high of $139.12 hit last week.

Oil prices have risen nearly seven-fold since 2002, partly because of rising demand from China and other rapidly developing countries, pressuring major consumer the United States, which is already hobbled by a housing slowdown and credit crunch.

Representatives of the world's biggest oil consumer and producer nations will meet in Saudi Arabia on June 22 to discuss the oil spike, which producer group OPEC says is due to speculation, not a lack of supply. [ID:nL11474726]