Asia slips on Fed blues
GLOBAL MARKETS/ STOCK REPORT
| Toyota fell the most in more than a week and Honda Motor had its biggest drop in three months as the yen strengthened beyond a two-year high against the dollar. Air China sank on concerns that rising fuel costs will erode earnings. |
| The Commonwealth Bank of Australia slid after Freddie Mac, the second-biggest US mortgage-finance company, reported a record loss. |
| "A spate of bad news related to the US sub-prime issue has made the outlook uncertain," said Kazuyuki Terao, who helps oversee $1.7 billion at RCM Japan in Tokyo. |
| "With the chances of a U.S. economic slowdown on the rise, there are concerns that high commodity prices could squeeze corporate profits." |
| The MSCI Asia Pacific Index lost 1.8 per cent to 155 at 5:23 pm in Tokyo, with all 10 industry groups falling. Japan's Nikkei 225 Stock Average slid 2.5 per cent to 14,838, its lowest close since July 2006, and Hong Kong's Hang Seng slumped 4.2 per cent, on course for its steepest monthly drop in a decade. All Asian markets fell except Pakistan. |
| EUROPE European stock-index futures retreated, following declines in Asia, after crude oil approached $100 a barrel and the Federal Reserve lowered the States' growth outlook. |
| Volkswagen, Europe's largest automaker, and consumer electronics producer Royal Philips Electronics may lead declines by companies most dependent on US sales. |
| Credit Suisse Group, Switzerland's second-largest bank, and France's Societe Generale may fall after Goldman Sachs added the stocks to its "conviction sell" list. |
| Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the nations using the euro, lost 60 points, or 1.4 per cent, to 4,236 at 7:40 am in London. |
| US Stock-index futures declined as oil approached $100 a barrel and investors speculated reports on Wednesday will add to evidence that economic growth is slowing. |
| DuPont, the country's third-largest chemical maker, dropped in Europe after crude advanced. Starbucks and Wal-Mart Stores, the world's biggest retailer, also retreated. |
| "The US consumer looks very fragile," said Simon Carter, who helps oversee $3 billion at Aegon Asset Management in Edinburgh. "Jobless claims and the Michigan data will be watched closely. The statement released on Tuesday by the Federal Reserve was not completely comforting." |
| Standard & Poor's 500 Index futures, expiring in December, lost 16.3 points to 1,430 as of 9:56 am in London. Dow Jones Industrial Average futures fell 120 points to 12,940 and Nasdaq 100 Index futures dropped 20 points to 2,015.5. |
| US stocks gained yesterday, rebounding from three-month lows, after record oil prices boosted energy companies and Credit Suisse Group said shares of Google may reach $900 in the coming year. |