Asian stocks end lower
Tuesday, 11 September 2007
TOKYO, Sept 10 (AFP): Asian stock markets ended mostly weaker Monday, hit by heavy losses on Wall Street after a surprise drop in US payrolls sparked fears the world's largest economy may be heading for recession, dealers said.
But the region's bourses finished well off their lows for the day, while some, such as Shanghai and Hong Kong, managed to end in positive territory.
Investors are now pinning their hopes on a Federal Reserve interest rate cut to shield the economy from the fallout from the US housing slump, dealers said.
"All eyes remain on the US where the market has already priced in a rate cut-the question is just how much," said Macquarie Private Wealth Management private client adviser Joseph Youssef in Sydney.
Hope of a US rate cut helped the main European bourses to eke out modest gains at the start of the week after steep falls Friday.
But many Asian stocks suffered losses after US and European markets were rattled Friday by news that the US economy lost 4,000 payroll jobs in August, the first decline in four years and far below market expectations.
"US employment has been growing for the past four years so the fall was pretty scary," said Hirokazu Fujiki, equity strategist at Okasan Securities.
"At the same time what is supporting stocks is expectations for a cut to the Fed funds rate on September 18. Investors are waiting ahead of developments in the United States. That's why there wasn't a shock selloff," he added.
But the region's bourses finished well off their lows for the day, while some, such as Shanghai and Hong Kong, managed to end in positive territory.
Investors are now pinning their hopes on a Federal Reserve interest rate cut to shield the economy from the fallout from the US housing slump, dealers said.
"All eyes remain on the US where the market has already priced in a rate cut-the question is just how much," said Macquarie Private Wealth Management private client adviser Joseph Youssef in Sydney.
Hope of a US rate cut helped the main European bourses to eke out modest gains at the start of the week after steep falls Friday.
But many Asian stocks suffered losses after US and European markets were rattled Friday by news that the US economy lost 4,000 payroll jobs in August, the first decline in four years and far below market expectations.
"US employment has been growing for the past four years so the fall was pretty scary," said Hirokazu Fujiki, equity strategist at Okasan Securities.
"At the same time what is supporting stocks is expectations for a cut to the Fed funds rate on September 18. Investors are waiting ahead of developments in the United States. That's why there wasn't a shock selloff," he added.