Asian shares stumble on Wall St. losses, growth worries
U.S. crude prices (CLc1) were up 0.8 percent at $30.72 a barrel, but still not far from Tuesday's nadir of $29.93, which was its lowest level since December 2003. Global benchmark Brent (LCOc1) settled down 1.8 percent on Wednesday at $30.31 a barrel, after falling as low as $29.96. That marked its first move below $30 a barrel since April 2004.
MSCI's
broadest index of Asia-Pacific shares outside Japan dropped 0.7
percent in early trade. Japan's Nikkei (.N225) shed 3.3 percent, as
downbeat domestic data added to the gloom.
Japan's
core machinery orders fell 14.4 percent in November from the previous
month, down for the first time in three months and marking a bigger
decline than economists' median estimate for a 7.9 percent drop.
On
Wednesday, better-than-expected China trade data lifted Asian sentiment
and gave equities and commodities prices a much-needed boost. But those
gains unraveled later in the global session, and major U.S. stock
indexes finished with sharp losses.
"Despite
improved sentiment after the better-than-expected trade balance report
in China, risky assets were hit by more evidence of a supply glut in the
energy markets that pushed oil prices back to multi-year low levels,"
strategists at Barclays wrote in a note to clients.
The benchmark 10-year U.S. Treasury yield
plumbed its lowest levels since late October as investors sought safety
in government debt. It stood at 2.078 percent in early Asian trade,
compared with its U.S. close of 2.066 percent on Wednesday.
Undermined
by lower U.S. yields, the dollar lost ground to the perceived
safe-haven Japanese counterpart. It was buying 117.38 (JPY=), down about
0.2 percent. The euro edged up about 0.1 percent to $1.0889 (EUR=).
Boston
Fed President Eric Rosengren sounded a cautious tone, saying global and
U.S. economic growth may be slipping and could force the Fed into a
more gradual course of rate hikes than officials currently expect.
Market
participants continued to keep an eye on China's yuan. The People's
Bank of China has held the line on its currency in the past few days,
calming fears of a sustained depreciation.
(Editing by Shri Navaratnam)
end quote from:
http://finance.yahoo.com/news/asian-shares-stumble-wall-st-003644020.html
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