Asian markets sink further on global economy fears

HONG KONG – Asian markets suffered fresh selling pressure Monday while the dollar dipped and oil hit multi-year lows following another round of losses on Wall Street fueled by global growth concerns.

There was little movement immediately after China released data showing a better-than-expected jump in exports and imports.

Investors are also warily watching events in Hong Kong as police begin removing barricades erected by pro-democracy protestors that have jammed up some of the city’s main roads for the past two weeks.

Hong Kong lost 0.66 percent, Shanghai fell 1.05 percent, Sydney lost 0.67 percent and Seoul eased 0.65 percent.

Tokyo was closed for a public holiday.

Global markets have been sent into a tailspin in recent weeks as traders fret over the state of the global economy, with China, the eurozone and Japan struggling despite the United States clawing its way back to health.

The latest indicators on the global outlook came from Beijing Monday, with official data showing exports rose 15.3 percent year-on-year and imports climbed 7.0 percent.

The rise in exports accelerated from August’s 9.4 percent and was ahead of the median forecast of 12.5 percent. The survey had predicted a fall of 2.4 percent in imports, matching a surprise decline in August.

Customs spokesman Zheng Yuesheng attributed the improvement to major economies recovering and external demand strengthening.

“The good momentum is expected to continue in the fourth quarter,” he added.

Warning over China

But while the figures beat expectations, traders are still worried about the strength of world’s number-two economy, which is a key driver of global and regional growth.

Desmond Chua, market analyst at CMC Markets, told Dow Jones Newswires the data “was a lot more disappointing than we had expected” and “cements the view that China might be in for quite a hard landing.”

On currency markets, the dollar eased to 107.15 yen from 107.65 yen in New York Friday, while the euro was at $1.2683 against $1.2627.

The single currency was also at 135.61 yen, from 135.97 yen.

The Japanese yen, which is considered a safe bet in times of turmoil, has rallied over the past as equities markets have tumbled.

Wall Street’s three main indexes ended in the red on Friday. The Dow fell 0.69 percent, the S&P 500 tumbled 1.15 percent and the Nasdaq slumped 2.33 percent.

In Hong Kong, police began removing some of the barricades that have clogged up parts of the city, catching some demonstrators unawares after their numbers had dwindled overnight.

However, the protesters remained at the site in Admiralty district and police said they were intent on clearing blockages to traffic rather than ending the demonstration.

While the Hang Seng initially tumbled in response to the stand-off, it recovered most of its losses as tensions have cooled, despite the city’s partial shutdown.

Oil prices tumbled again on pessimism about demand for the black gold. US benchmark West Texas Intermediate for November delivery fell 94 cents to $84.87 – its weakest for two years – while Brent North Sea crude lost 96 cents to a four-year low of $89.25.

Gold was at $1,233.38 an ounce against $1,222.00 late Friday.