Asian stocks fall for first time in 8 days, Yen gains
Bloomberg / Sep 15, 2009, 00:21 IST
The MSCI World stock index fell for the first time in eight days on speculation the advance has outpaced the prospects for earnings growth. Commodities dropped and the yen advanced.
The MSCI World Index of 23 developed markets slipped 0.9 per cent at noon in London. Futures on the Standard & Poor’s 500 Index declined 0.8 per cent. Copper fell 1.7 per cent and oil decreased 1.1 per cent. The yen strengthened against 14 of the 16 most-traded currencies tracked by Bloomberg.
Equities retreated after China, the world’s fastest growing major economy, said it’s probing US sales of chicken and auto products for “unfair trade practices,” two days after the US imposed tariffs on Chinese tires. Signs that the economies are recovering from the first global recession since World War II have prompted a six-month rally that pushed the MSCI World to its most expensive level in more than six years.
“What we are seeing today is extreme nervousness,” Puru Saxena, who oversees about $260 million as chief executive officer of Puru Saxena in Hong Kong said in an interview. “Most people are convinced we are going to have another autumn crash.”
The Dow Jones Stoxx 600 Index of European shares fell 1.1 per cent, led by raw-material producers. A 51 per cent surge since March 9 has driven valuations on the gauge to 46.8 times profit.
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