Asian stocks fall as dollar slides
Friday, 27 November 2009
TOKYO, Nov 26 (AP): Asian stock markets dropped Thursday as mostly positive economic news in the US failed to inspire investors and the dollar tumbled to a 14-year low against the Japanese yen.
Gold, meanwhile, hit a new record high of $1,196.8 an ounce as investors increased their bets on commodities to hedge against the sinking dollar.
Concerns the greenback will continue to languish were running high following indications the U.S wasn't overly concerned about its currency's slide and will keep interest rates at ultra low levels for some time.
That helped dragged the dollar as low as 86.27 yen - its weakest since July 1995. The rising Japanese currency in turn hit shares of major exporters like Toyota and Canon whose overseas profits and competitiveness erode with a stronger yen.
Most major markets were lower throughout the region, with Japan's Nikkei 225 stock average losing 58.40 points, or 0.6 per cent, to 9,383.24 and Hong Kong's Hang Seng shedding 242.19 points, or 1.1 per cent, to 22,369.61.
Gold, meanwhile, hit a new record high of $1,196.8 an ounce as investors increased their bets on commodities to hedge against the sinking dollar.
Concerns the greenback will continue to languish were running high following indications the U.S wasn't overly concerned about its currency's slide and will keep interest rates at ultra low levels for some time.
That helped dragged the dollar as low as 86.27 yen - its weakest since July 1995. The rising Japanese currency in turn hit shares of major exporters like Toyota and Canon whose overseas profits and competitiveness erode with a stronger yen.
Most major markets were lower throughout the region, with Japan's Nikkei 225 stock average losing 58.40 points, or 0.6 per cent, to 9,383.24 and Hong Kong's Hang Seng shedding 242.19 points, or 1.1 per cent, to 22,369.61.