Asia stocks fall as global economic gloom builds
BANGKOK — Asian stock markets fell Thursday, as Japanese business confidence dropped and fears grew of a global economic slowdown.
Japan’s Nikkei 225 index shed 1.3 percent to 8,409.30. South Korea’s Kospi index lost 1.6 percent to 1,828.15 and Hong Kong’s Hang Seng tumbled 2 percent to 17,991.17. Australia’s S&P ASX 200 dropped 1.7 percent to 4,119.90. Benchmarks in Singapore, Taiwan, and mainland China were also lower.
In Japan, confidence at major manufacturers fell over the last quarter. The Bank of Japan’s “tankan” survey of business sentiment fell to minus 4.
The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavorable, with 100 representing the best mood and minus 100 the worst.
Japan’s strong yen has hit multiple historic highs this year against the dollar, making business conditions difficult for Japan’s export-reliant economy.
On Wall Street, stocks plummeted Wednesday amid a growing sense that Europe’s leaders have failed to contain that region’s debt crisis.
Since European leaders reached an agreement to rein in future government budget deficits last week, investors and credit rating agencies have criticized the deal for failing to address current problems.
Italy had to pay higher borrowing rates in its last bond auction of the year Wednesday. The euro zone’s third-largest economy paid 6.47 percent interest to borrow euro3 billion ($3.95 billion) for five years, up from 6.30 percent just a month ago. The higher rates make it more expensive for Italy to borrow money and reflect rising doubts that the country will be able to repay its debts.
The Dow Jones industrial average fell 1.1 percent to close at 11,823.48. The Standard & Poor’s 500 index fell 1.1 percent to 1,211.82. The Nasdaq fell 1.6 percent to 2,539.31.
Benchmark oil for January delivery was up 3 cents at $94.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined $5.19 to finish at $94.95 per barrel on the Nymex.
In currency trading, the euro rose to $1.2985 from $1.2977 late Wednesday in New York. The dollar was nearly unchanged at 78.06 yen from 78.07 yen.
