Asian stocks fall again as uncertainty mounts
Rising European debt, China's steps to cool economy and higher US job losses prompt fall
Singapore/Sydney : Asian stocks fell for the third week on concern rising US job losses and mounting debt in Europe, combined with China's steps to cool its economy, will drag on the global economic recovery.
Mitsubishi Corp, which gets about 40 per cent of sales from commodities, fell 3.2 per cent as metal prices slumped. Toshiba Corp dropped 13 per cent after Japan's biggest maker of memory chips cut its revenue forecast. Maanshan Iron & Steel Co retreated 4.5 per cent in Hong Kong after the deputy governor of China's central bank said the government plans to curb overcapacity in industries including steel. Toyota Motor Corp sank five per cent in record-high trading in Tokyo as the world's biggest carmaker faces its worst recall crisis.
‘Doomsayers'
"The doomsayers are having their day," said Roger Groebli, Singapore-based head of financial-market analysis at LGT Capital Management, part of a group that oversees about $84 billion (Dh308 billion.)
"Markets are fragile and investors aren't differentiating."
The MSCI Asia Pacific Index dropped 1.8 per cent to 114.68, the lowest close since November 27. The gauge has fallen 9.5 per cent from a 17-month high on January 15 on concern central banks from China to India will tighten monetary policy to curb inflation.
The Nikkei 225 Stock Average declined 1.4 per cent last week. Australia's S&P/ASX 200 Index fell 1.2 per cent. Hong Kong's Hang Seng Index slumped 2.3 per cent to below 20,000, and the Shanghai Composite Index lost 1.7 per cent.
The MSCI Asia Pacific Index rose 34 per cent last year as growth in China helped the global economy emerge from the worst recession since the Second World War. The US Standard & Poor's 500 Index gained 23 per cent in 2009, while Europe's Dow Jones Stoxx 600 Index added 28 per cent.
The gauge's third weekly decline occurred as more Americans unexpectedly filed first-time claims for unemployment insurance. Initial jobless applications increased to 480,000 in the week ended January 30, the US Labour Department said.
