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Asian stocks retreat as Nikkei tanks

Aug 31 2010 10:52 Sapa

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Bangkok - Asian markets sank Tuesday as a strong yen pummelled Japanese shares and pessimism about the US economy intensified.

The losses in Asia came after Wall Street declined on more signs of slowing economic growth that got investors worried ahead of a key report on jobs later this week.

Japan's Nikkei 225 stock average led regional declines, down 282.55 points, or 3.1%, to 8 866.71.

Dragging on sentiment was the yen's advance - which erodes the earnings of Japan's vital exporters - and disappointment over the central bank's decision to ease monetary policy by expanding a low-interest low programme. Markets had been hoping for stronger action.

Elsewhere, Hong Kong's Hang Seng index was down 1.1% at 20 513.05, South Korea's Kospi dropped 1% to 1 743.44, and Australia's S&P/ASX 200 fell 1% to 4 409.00.

Benchmarks in mainland China, Singapore, Taiwan and New Zealand also retreated.

Heavy selling hit tech shares, with Sony losing 3.2% and Panasonic down 1.5% in Tokyo. South Korea's Samsung fell 1.7%.

In New York, the Dow fell 140.92, to close at 10 009.73. A report on Monday showed that personal incomes rose less than expected in July. That added to a series of discouraging economic indicators recently suggesting that growth could slow down in the second half of the year.

The Standard & Poor's 500 index fell 15.67, to 1 048.92, while the Nasdaq composite index fell 33.66, to 2 119.97.

In currencies, the dollar fell to ¥84.18 from ¥84.54 late on Monday. The euro fell to $1.2644 from $1.2661.

Benchmark crude for October delivery was down 69c at $74.01 a barrel in electronic trading on the New York Mercantile Exchange.

The contract lost 47c to settle at $74.70 a barrel on Monday.

 
 
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