Asia stocks extend sell-off amid recovery fears
HONG KONG — Most Asian stock markets veered lower a second day Tuesday, extending a worldwide sell-off amid continuing fears about the pace of economic recovery.
Shanghai’s market was up 0.2 percent in a volatile session a day after tumbling nearly 6 percent to its worst finish in two months. Wall Street futures and oil prices were steady.
Investors sent global stocks into a tailspin on Monday after weaker-than-expected signals from U.S. consumers and retailers deepened concerns the turnaround in the world’s largest economy would be slower and more feeble than hoped.
Analysts said investors were now trying to sort out whether stock prices, up massively over a five-month rally, had gotten too far ahead of fundamentals.
“The jury is still out for a lot of investors if this a minor pullback or the start of a major correction,” said Kirby Daley, senior strategist at Newedge Group in Hong Kong. “No one is really trading with conviction today. Uncertainty abounds.”
Almost every major market traded lower.
Tokyo’s Nikkei 225 stock average fell 17.26 points, or 0.2 percent, to 10,251.35 and Hong Kong’s Hang Seng shed 61.99 points, or 0.3 percent, to 20,075.66.
Elsewhere, South Korea’s Kospi dropped 0.2 percent, Taiwan’s key index dived 2.1 percent and Indonesia’s benchmark fell 3.4 percent.
Heavy selling in China’s market Monday spread to Europe and Wall Street.
Overnight, the Dow fell 186.06, or 2 percent, to 9,135.34, its lowest close since July 29. The Dow had been down almost 205 points at its low of the day.
The broader S&P 500 index, the basis for many investments like mutual funds, fell 24.36, or 2.4 percent, to 979.73. Last week it was up 49.7 percent from a 12-year low of 676 in early March.
Stock futures indicated a slightly higher open Tuesday on Wall Street. Dow futures gained 6, or 0.1 percent, to 9,126 and S&P futures were up 0.7, or 0.1 percent, to 979.
Oil prices were little changed in Asia, with benchmark crude for September delivery up 31 cents to $67.06. The contract dropped 76 cents overnight.
The dollar was higher at 94.92 yen from 94.48 yen. The euro rose to $1.4114 from $1.4072.
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