Publications
Partners
Hong Kong - Asian stocks dropped Wednesday, as concerns over the European economy and international conflicts grew.
Traders said sentiment had also been hit by news that several huge mergers had collapsed, including 21st Century Fox's bid for Time Warner and that of Japanese-controlled US wireless operator Sprint for T-Mobile.
"A perfect storm of low volumes, geopolitical worries and pulled mergers is conspiring to keep markets on the back foot," said Chris Beauchamp, market analyst at IG trading group.
Tokyo fell 0.21% by the break while Hong Kong slipped 0.35% and Sydney was down 0.30%. Seoul also dipped 0.10% while Shanghai was flat.
This followed losses in London, Paris, Frankfurt, and Lisbon. Official data showed Italy slid back into recession in the second quarter, prompting renewed fears of about the health of the Eurozone.
"It isn't just Ukraine. Even without the risk of some kind of Russian intervention as the Ukrainian army moves to crush separatists, Europe's economy is dead in the water and at risk of a new recession," Reorient Group told Dow Jones Newswires.
In the US, stocks edged higher Wednesday despite new Russian sanctions against the West, with investors saying the economy was "insulated" from conflicts in the Middle East and Europe.
The Dow Jones Industrial Average gained 0.08% to 16 443, while the broad-based S&P 500 was essentially flat. The tech-rich Nasdaq Composite Index rose 2.22 (0.05%) to 4 355.
Jack Ablin, chief investment officer at BMO Private Bank said: "The US appears to be more of a safe haven. Investors are trying to cozy back up to the US where there is economic growth and where our economy is somewhat insulated from the geopolitical confrontations that are going on."
In Australia, shares slipped after the unemployment rate spiked to a 12-year high.
The Australian Bureau of Statistics said unemployment rose to 6.4% from 6.0% in June.
July employment dropped by 300 compared with a forecast increase of 12 000.
On the currency markets, the dollar was at ¥102.07 in early Tokyo trade Thursday, compared with ¥102.11 in New York late Wednesday.
The euro bought $1.3385 and ¥136.61 against $1.3384 and ¥136.66.
In oil trade, prices moved higher. The US benchmark West Texas Intermediate for September delivery rose 17 cents to $97.09 while Brent crude for September gained 21c to $104.80.
Gold fetched $1 307.20 an ounce by 04:45 compared with $1 293.88 late Wednesday.
