Publications
Partners
Beijing - Asian stock markets slid on Tuesday after downbeat US data fuelled fears the world's largest economy might be sliding back into recession.
Oil prices hovered near $95 a barrel on expectations that slowing global economic growth will reduce demand for crude.
Japan's Nikkei 225 fell 1.3% to 9 833.81 and China's Shanghai Composite Index lost 1.7% to 2 656.94. Hong Kong's Hang Seng slipped 0.7% to 22 513.63. Seoul, Taipei, Sydney and Singapore also fell.
The declines came despite an agreement by US lawmakers to raise Washington's $14.3 trillion debt ceiling and followed the release Monday of a disappointing survey of American manufacturing activity. The Institute for Supply Management's index for July dropped to 50.9 from the previous month's 55.3, indicating a slowdown.
The report showed investors "just how fragile the US economy really is," said IG Markets strategist Ben Potter in a report.
South Korea's Kospi lost 1.5% to 2 139.31 and Taiwan's Taiex declined 1.2% to 8 598.99. Australia's S&P/ASX 200 shed 1.3% to 4 439.20 and Singapore's benchmark lost 0.9% to 3 187.47.
Other data this week could be crucial to investor expectations, culminating Friday with US monthly employment figures. The consensus is that the US economy generated only 100 000 jobs in July, not be enough to reduce the unemployment rate.
US and European markets opened higher on Monday on relief that American lawmakers had averted a potential debt crisis but shed their gains after the release of the manufacturing index.
Also Monday, two surveys showed China's manufacturing activity weakened further in July as the government tried to cool its overheated economy.
On Wall Street, the Dow Jones industrial average fell 1% at 12 024.53 while the broader Standard & Poor's 500 index lost 1.1% to 1 278.26.
Though a debt default appears to have been avoided, worries over US finances are likely to persist and a number of analysts think the credit rating agencies may still downgrade the country's triple A rating.
In currency markets, the dollar edged up to ¥77.49 after briefly hitting a record low of ¥76.27 on Monday. The euro gained to $1.426 from Monday's $1.4205.
Benchmark oil for August delivery was up 9 cents to $94.98 a barrel in electronic trading on the New York Mercantile Exchange. Crude fell 81c to settle at $94.89 on Monday.
In London, Brent crude was down 26c at $116.855 a barrel on the ICE Futures exchange.
