Asia stocks dragged down by selloff in Europe

BANGKOK — Asian stocks fell Tuesday, dragged down by sharp losses in European markets the day before as fears mounted of a worsening global economy.

Oil slid to $84 a barrel amid expectations that continued weakness in developed economies will crimp demand for crude. The dollar was higher against the euro but lower against the yen.

Japan’s Nikkei 225 index dropped 1.2 percent to 8,676.12 and Australia’s S&P/ASX 200 lost 1.2 percent to 4,092.20. South Korea’s Kospi index was down 1 percent at 1,767.35.

The falls in Asia come a day after European shares suffered sharp losses. Britain’s FTSE 100 closed down 3.6 percent to 5,102.58. Germany’s DAX tumbled 5.3 percent to 5,246.18, and France’s CAC-40 dived 4.7 percent to 2,999.54.

Hong Kong’s Hang Seng was down 1 percent at 19,417.10, with property developers hurt by speculation that the Chinese government may further slow investment in construction as it seeks to tamp down inflation and rebalance the economy.

Hong Kong-listed Anhui Conch Cement Co. plunged 6.5 percent. Blue chip developer China Vanke Co. lost 3.8 percent. The company also reported its sales in August dropped 12.6 percent from a year earlier, a possible sign that the government’s cooling measures are having a real impact.

A wave of negative sentiment was unleashed Friday, when a government report said the U.S. economy failed to add any new jobs in August. That caused European and Asian stock markets to sink sharply Monday.

The August jobs figure was far below economists’ already tepid expectations for 93,000 new U.S. jobs and renewed concerns that the U.S. recovery is not only slowing but actually going into reverse.

U.S. hiring figures for June and July were also revised lower, adding to the gloom. The unemployment crisis has prompted President Barack Obama to schedule a major speech Thursday night to propose steps to stimulate hiring.

The health of the U.S. economy is crucial for the wider world because consumer spending there accounts for a fifth of global economic activity. The U.S. imports huge amounts from Japan and China and is closely linked at all levels with the European market.

Wall Street, which was closed Monday due to the Labor Day holiday, was bracing for losses Tuesday.

Benchmark oil for October delivery was down $2.45 to $84 in electronic trading on the New York Mercantile Exchange. Crude last settled at $86.45 on Friday because U.S. markets were closed Monday for the holiday.

In London, Brent crude for October delivery was up 60 cents at $110.68 on the ICE Futures exchange.

In currencies, the euro weakened to $1.4073 from $1.4187 in New York late Friday as worries mounted about Greece’s ability to meet requirements set by international lenders to stave off a massive default on the country’s debts.

The dollar weakened to 76.81 yen from 76.87 yen. Last month, the dollar fell under 76 yen, which was a new post-World War II high for the Japanese currency.

Talk to us

More in Local News

Tala Davey-Wraight, 3, is thrown in the air by her dad Oscar Davey-Wraight, one of the Summer Meltdown headliners also known as Opiuo, during Cory Wong’s set on Thursday, July 28, 2022 in Snohomish, Washington. (Olivia Vanni / The Herald)
After Monroe debut, no Summer Meltdown music fest in 2023

Organizers announced Wednesday they would “take the year off in order to figure out the best path forward for Summer Meltdown in 2024.”

Logo for news use featuring the municipality of Mountlake Terrace in Snohomish County, Washington. 220118
Mountlake Terrace council taps planning commissioner for open seat

With five votes, Rory Paine-Donovan was affirmed to join the ranks of the Mountlake Terrace City Council.

Federal agents seized many pounds of meth and heroin, along with thousands of suspected fentanyl pills, at a 10-acre property east of Arlington in mid-December 2020. (U.S. Attorney’s Office) 20201223
Leader of Snohomish County fentanyl, meth ring gets federal prison

A search of Cesar Valdez-Sanudo’s property in Arlington unearthed kilos of drugs and hundreds of thousands of dollars.

Karla Wislon holds a champagne glass while celebrating the closing sale of her home in Palm Springs, Ca. on May 14, 2021. (Family photo)
Former state Rep. Karla Wilson, 88, remembered as ‘smart, energetic’

Wilson served the 39th Legislative district from 1985 to 1991. She died Dec. 31.

CEO Amy King standing outside of a pallet shelter. (Courtesy of Pallet Shelter)
After rapid rise, Everett’s Pallet hits milestone: 100 shelter villages

Temporary home manufacturer Pallet hires locals who have “experienced homelessness, substance abuse or the justice system.”

Locals from the group Safe Lynnwood gather in front of the Ryann Building on 196th Street SW to protest the opening of a methadone clinic in the building on Sunday, Jan. 22, 2023, in Lynnwood, Washington. (Ryan Berry / The Herald)
Despite controversy, Lynnwood opioid treatment center opens its doors

For weeks, protesters have objected to the center opening near Little League fields and a Boys and Girls Club.

Logo for news use, for stories regarding Washington state government — Olympia, the Legislature and state agencies. No caption necessary. 20220331
Lobbyist barred from WA Capitol after ruling he stalked representative

State Rep. Lauren Davis, D-Shoreline, obtained a domestic violence protective order against longtime lobbyist Cody Arledge.

Charlie Pancerzewski (Courtesy of Pancerzewski family)
Mukilteo citizen watchdog, 83, spoke for ‘the facts and the truth’

“It is fitting that the public see (Charlie Pancerzewski’s) name when they get up to the podium for public comment,” the mayor said.

A suspect removes a rifle bag from a broken rear window of a Seattle police car on May 30 in downtown Seattle. An Everett man, Jacob D. Little, 24, has been charged with the theft of the high-powered rifle stolen from the car. This image is from the criminal complaint filed in U.S. District Court. 20200904
Everett man sentenced for stealing police gun in Seattle protest

Jacob Little, 26, now faces second-degree murder charges for allegedly killing a man in Renton in August 2020.

Most Read