Asian markets fall on renewed recovery doubts
BANGKOK — Most Asian stock markets sank Friday as mixed economic data from the world’s largest economy reinforced fears that investors have overestimated the recovery’s strength.
Knocked by weak exporters, Japan’s Nikkei 225 stock average fell 145.21 points, or 1.4 percent, to 10,238.20. Hong Kong’s Hang Seng was down 179.11, or 0.9 percent, to 20,148.56 while China’s Shanghai Composite index rose for a second day — gaining 1.7 percent to 2,960.77 — after rattling investors worldwide when it tumbled earlier this week.
“Many of the global markets have gone up more than 50 percent within the last five months, but investors have begun to realize that economic growth isn’t as good as they thought,” said Peter Lai, investment manager at DBS Vickers in Hong Kong. “So many of the smart funds have been taking profits recently.”
Wall Street posted modest gains Thursday as news of an improvement in regional manufacturing and an uptick in a guage of leading economic indicators offset an unexpected rise in new claims for unemployment benefits. Still, the data suggest the U.S. economy is creeping rather than sprinting out of recession, a worrying sign for export-dependent Asia.
Elsewhere in the region, Australia’s index retreated 2 percent after a government fund sold a big chunk of shares in the country’s top telecommunications company Telstra. Singapore’s index was off 0.7 percent while South Korea’s Kospi recovered early losses to rise 0.3 percent.
In Tokyo trade, exporters like Sony Corp. were pressured by a rising yen, which cuts into overseas profits. The market was also dragged down by selling of auto stocks after the U.S. government announced it would end the popular $3 billion Cash for Clunkers rebate scheme.
Toyota fell 2.9 percent, Honda Motor Co. lost 4.1 percent, and Nissan Motor Co. dropped 5.2 percent. Sony was down 1.4 percent.
In the U.S. Thursday, the Dow Jones industrials rose 70.89, or 0.8 percent, to 9,350.05. The Standard & Poor’s 500 index rose 10.91, or 1.1 percent, to 1,007.37, while the Nasdaq composite index gained 19.98, or 1.0 percent, to 1,989.22.
U.S. stock index futures were down, suggesting Wall Street would fall Friday. Dow futures lost 36 points, or 0.4 percent, to 9,284 and S&P futures shed 2.6, or 0.3 percent, to 1,002.10.
Oil prices languished below $73 a barrel in Asia as the U.S. data pointed to a slow recovery in demand for crude. Benchmark crude for October delivery was down 24 cents to $72.67 a barrel by late afternoon Singapore time in electronic trading.
In currencies, the dollar fell to 93.95 yen from 94.17 yen. The euro slipped to $1.4245 from $1.4247.
AP Business Writer Jeremiah Marquez in Hong Kong and Associated Press Writer Shino Yuasa in Tokyo contributed to this story.
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