STOCKS NEWS ASIA
Asian shares to falter as Wall St slides
Reuters
First Posted 07:50:00 12/02/2008
Filed Under: Stock Activity, Markets & Exchanges, Emerging Markets Debt, world financial crisis, Economy and Business and Finance
WELLINGTON, Australia -- Asian shares are primed for heavy losses on Tuesday, following another deep sell-off on Wall Street, as economic worries continue to dog equity markets worldwide.
Federal Reserve chairman Ben Bernanke painted a grim picture of the US economy in comments on Monday, saying it remained under considerable strain and decisive action was needed.
The main US stock indices lost more than 7.0 percent after data showed US manufacturing fell to its lowest level since 1982.
The National Bureau of Economic Research's business cycle dating committee, the accepted arbiter of US recessions, said the economy entered a recession in December 2007.
News of weaker Chinese and European manufacturing activity also came earlier in the day.
The US dollar and the yen both gained, along with US Treasuries, as investors funds were shifted back into safer assets.
Oil prices dived 9.0 percent as the Organization of Petroleum Exporting Countries deferred a decision on supply cuts, while commodity prices generally weakened on ongoing demand worries.
Nikkei share average futures traded in Chicago tumbled almost 9.0 percent.
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