Asian shares fall to three-month lows
Tuesday, 2 February 2010
SINGAPORE, Feb 1 (Reuters): Asian stocks fell to three-month lows Monday with investors cautious after new data strengthened the case for tighter Chinese monetary policy and as attention focused on key US economic reports due this week.
European shares were also expected to retreat by as much as 1.2 per cent amid lingering worries about Greece and other weak euro zone members.
US stock futures pointed to a slightly higher open after Wall Street ended lower Friday despite data showing the US economy grew at its fastest pace in six years in the fourth quarter.
Markets are bracing for a big week with a number of major central bank meetings across the world and a raft of economic reports out of the United States, culminating in the non-farm payrolls data Friday.
Many of Asia's stock markets lost ground Monday, rattled by US losses last week, while Japan's Nikkei stock average ended flat.
"A correction in Asia is healthy, definitely. Prices have moved ahead quite well," said Alex Boggis, fund manager at Aberdeen Asset Management, which oversees about $240 billion in investments.
"Obviously over the last year markets have moved ahead quite strongly based on ... a dramatically improving environment. But has it really dramatically improved?"
Asia Pacific stocks outside Japan as measured by MSCI were off 0.84 per cent, a 3-month low. The index lost 6.4 per cent in January, its worst month in a year, after a 68-per cent surge in 2009, as a host of unsettling factors prompted investors to take profits.
According to data from Nomura, foreigners sold nearly $4.1 billion in stocks in six Asian markets ex-Japan in the week ended January 31 -- led by $1.7 billion in Taiwan, $1.2 billion in India and $811 million in South Korea.
The US dollar held at its highest levels in six months Monday, while the euro huddled near seven-month lows on euro zone fiscal concerns, and higher yielding currencies remained pressured by the closing of leveraged trades.
Fresh worries over public finances of Greece, Portugal and other smaller euro zone countries have also weighed on global stocks. Fears that Athens will not be able to service its heavy debt have prompted investors to shun riskier investments.
European shares were also expected to retreat by as much as 1.2 per cent amid lingering worries about Greece and other weak euro zone members.
US stock futures pointed to a slightly higher open after Wall Street ended lower Friday despite data showing the US economy grew at its fastest pace in six years in the fourth quarter.
Markets are bracing for a big week with a number of major central bank meetings across the world and a raft of economic reports out of the United States, culminating in the non-farm payrolls data Friday.
Many of Asia's stock markets lost ground Monday, rattled by US losses last week, while Japan's Nikkei stock average ended flat.
"A correction in Asia is healthy, definitely. Prices have moved ahead quite well," said Alex Boggis, fund manager at Aberdeen Asset Management, which oversees about $240 billion in investments.
"Obviously over the last year markets have moved ahead quite strongly based on ... a dramatically improving environment. But has it really dramatically improved?"
Asia Pacific stocks outside Japan as measured by MSCI were off 0.84 per cent, a 3-month low. The index lost 6.4 per cent in January, its worst month in a year, after a 68-per cent surge in 2009, as a host of unsettling factors prompted investors to take profits.
According to data from Nomura, foreigners sold nearly $4.1 billion in stocks in six Asian markets ex-Japan in the week ended January 31 -- led by $1.7 billion in Taiwan, $1.2 billion in India and $811 million in South Korea.
The US dollar held at its highest levels in six months Monday, while the euro huddled near seven-month lows on euro zone fiscal concerns, and higher yielding currencies remained pressured by the closing of leveraged trades.
Fresh worries over public finances of Greece, Portugal and other smaller euro zone countries have also weighed on global stocks. Fears that Athens will not be able to service its heavy debt have prompted investors to shun riskier investments.