Asian stocks, euro fall on US jobs data, Hungary fears

مُصعب · #1 June 7, 2010, 12:01 PM

Asian shares and the euro plummeted Monday as traders took their lead from a slumping Wall Street and worries that Hungary's public finances face a Greece-style meltdown.
Fresh fears for the global recovery were stoked after the United States released worse-than-expected jobs figures at the end of last week.
Tokyo dived 3.84 percent, or 380.39 points, to 9,520.80 as the weaker yen hit exporters, while Sydney shed 2.78 percent, or 123.5 points, to 4,325.9.
Hong Kong was 2.36 percent lower by the break and Singapore dropped 1.77 percent.
The US announced Friday that 431,000 non-farm jobs were created in May, well below the 500,000 analysts had forecast, figures that soured international investor sentiment and are weighing on hopes for the world's biggest economy.
The problem was also made worse by the fact that the vast majority of them were due to temporary government hiring for this year's census.
The figures led a sell-off on the Dow, which fell 3.15 percent Friday to its weakest close since February 8.
Traders were also fretting about further European currency woes after Hungary, which was bailed out in 2008 by the EU and International Monetary Fund, was facing fiscal trouble again.
Markets were spooked after a spokesman for the recently elected Hungarian prime minister hinted that the country could default.
The euro dipped below 1.19 dollars in Asian trade for the first time since March 2006, briefly changing hands at 1.1882 dollars in Tokyo. It also plunged to 108.47 yen, the lowest level in more than eight years.
In Asian afternoon trade the euro was at 1.1924 dollars and 108.83 yen.
The strengthening yen was weighing on exporters, analysts said, as it makes their products more expensive overseas and reduces their repatriated profits.
"The double punch is having an impact," said Masatoshi Sato, market analyst at Mizuho Investors Securities, referring to the eurozone worries and weak US jobs data. "It's hard to say which one is more serious."
"The Tokyo market is fearing the effect of the yen appreciating," he said.
"This is very severe," added Sato. "Hopes are that Europe will implement policy measures to deal with it. But it seems Europe might be facing a stalemate. Their fiscal problems are deep-rooted."
Credit Agricole strategists said the euro was likely to fall as low as its January 1999 introduction level of 1.1830 dollars later Monday.
"This week is unlikely to see a let-up in pressure on risk trades," they said in a note, adding that there were growing questions on Germany's commitment to the Greek rescue package by the EU and IMF.
"The constitutional court potentially blocking Germany's contribution will only add to the pressure on the euro."
Mizuho Corporate Bank market economist Daisuke Karakama said: "I understand well why (market players) don't want to hold the euro now. They don't know what bad news will come out next."
"The news on Hungary showed getting a bailout and being able to rehabilitate state coffers are two different things," said Karakama, adding that investors would be reflecting on how this may apply to the recent bailout for Greece.
Shanghai was two percent lower due to concerns that a multi-billion-dollar offering plan by Agricultural Bank of China would dilute the share market. Related article: Size of Agricultural Bank of China IPO in doubt
Oil fell in Asian trade due to concerns about falling demand. New York's main futures contract, light sweet crude for delivery in July, dropped 1.55 dollars to 69.96 dollars a barrel.
Brent North Sea crude for July delivery shed 96 cents to 71.13 dollars.
And gold opened at 1,216.50-1,217.50 US dollars an ounce in Hong Kong, up from Friday's close of 1,205.00-1,206.00 dollars as dealers looked for safer assets.
In other markets:
-- Seoul closed 1.57 percent, or 26.16 points, lower at 1,637.97.
-- Taipei ended 2.54 percent, or 186.76 points, lower at 7,157.83.
The market was also hit by a 5.62 percent in Hon Hai Precision to 117.5 Taiwan dollars, after it announced that will raise the monthly pay for some China workers by nearly 70 percent to 2,000 yuan (290 dollars) from October 1.
Analysts said the move at its Foxconn factory may erode Hon Hai's profit by a third.
-- Manila slumped 2.71 percent, or 90.94 points, to 3,266.11.
Metropolitan Bank & Trust fell 2.6 percent to 55.50 pesos, geothermal power producer Energy Development was down 3.1 percent to 4.65 and Philippine Long Distance Telephone lost 0.8 percent to 2,430.
-- Wellington was closed for a public holiday.

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Asian stocks, euro fall on US jobs data, Hungary fears

اخبار الاسهم السعودية اليومية والاقتصاد العالمي