RPT-GLOBAL MARKETS-Asia stocks drop as bank job cuts hit mood

(Repeating to additional subscribers with no changes to text)

* Big job cuts at Citi remind investors of bank instability

* S.Korea won on track for 6th day of losses

* Some big investors are seeing good value

By Kevin Plumberg

HONG KONG, Nov 18 (Reuters) - Asian stocks fell on Tuesday after Citigroup cut 52,000 jobs in a dramatic move to save itself and downbeat policymaker comments reflected worsening economic conditions that will unlikely improve until well into 2009.

Despite relatively stable conditions in short-term credit markets, banks were struggling to contain climbing losses on bad loans, with Citi (C.N), the second-largest U.S. bank, reducing 15 percent of its workforce and HSBC laying off an additional 500 staff in Asia after announcing 1,100 job cuts in September.

"Investors find it hard to invest in the financial sector unless signs emerge that the global economy has started to improve," said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC in Tokyo.

Rising unemployment is a painful reminder of how the brutal trend of slashing away risk in investor and institutional portfolios, which has been a key factor in erasing about $7 trillion from global equity market cap so far this year, has far-reaching consequences beyond just financial markets.

Meanwhile, the South Korean won was on track for a sixth straight day of losses against the U.S. dollar, which held broadly firm as investors continued to seek safety in the world's foremost reserve currency.

CONCERN OVER FINANCIALS

Asia-Pacific stocks outside of Japan fell 1.85 percent, bringing year-to-date losses to around 58 percent, according to an MSCI index .MIAPJ0000PUS. Asia's losses have outpaced the all-country world index, which is down 47.5 percent in 2008.

Japan's Nikkei share average .N225 was down 1 percent, led by Softbank Corp (9984.T), the country's third-biggest mobile phone operator.

Shares of Mitsubishi UFJ Financial Group (MUFG) (8306.T), Japan's largest bank, were down 2.7 precent after Citigroup's massive layoffs reignited fears about the financial industry's stability.

Hong Kong's Hang Seng index .HSI dropped 1.9 percent, with Hong Kong Exchanges & Clearing stock (0388.HK) the biggest percentage decliner for a second day, off 5.5 percent.

Falling 2009 economic growth expectations have been feeding through to financial and commodity markets, as investors price in much slower demand next year. Indeed, Japan's Economics Minister Kaoru Yosano said it was hard to expect the world's No. 2 economy to log positive growth in the next fiscal year starting in April.