Asian stocks extend global sell-off, Tokyo down 3.4 percent

AP News
Posted: Sep 28, 2015 11:56 PM
Asian stocks extend global sell-off, Tokyo down 3.4 percent

TOKYO (AP) — Asian stock markets tumbled Tuesday, extending a global market sell-off triggered by grim corporate news, expectations of a Fed rate hike and jitters about the Chinese economy.

KEEPING SCORE: Japan's benchmark Nikkei 225 dropped 3.4 percent to 17,037.07 and Australia's S&P/ASX 200 lost 2.9 percent to 4,967.10. South Korean markets were closed for a Thanksgiving holiday. Hong Kong's Hang Seng slid 3.4 percent to 20,457.01. The Shanghai Composite in mainland China fell 1.7 percent to 3,038.17. Singapore and Indonesia fell while the Philippines was slightly higher.

SOUR COCKTAIL: Analysts say investors have been buffeted by a slew of bad news. The fallout from Volkswagen's emissions rigging scandal is spreading to other auto brands. Pharmaceutical stocks in the U.S. are limping after a price-gouging incident raised the prospect of greater regulation. Commodity company Glencore dived 29 percent in London as investors increasingly doubt its financial strength in a time of weak commodity prices. Fed officials, meanwhile, continue to signal they will raise U.S. interest rates this year, marking the beginning of the end of ultra-low interest rates that have underpinned stock markets.

THE QUOTE: "Market sentiments continued to sour during the overnight session, with a host of factors being thrown as reasons behind the risk selling," said Bernard Aw, market strategist at IG in Singapore. "Meanwhile, the message from the Fed seems to be consistent, with New York Fed president Dudley sticking to the 'we would like to raise rates this year' narrative."

ASIAN DATA: Important economic indicators in Asia this week include the Tankan report on Japanese business confidence due Wednesday, which will show how much faith companies have in the prospects for economic recovery. Investors who worry China's economic downturn might deepen were looking ahead to purchasing managers indexes due Thursday for manufacturing and service industries.

WALL STREET: The Standard & Poor's 500 index slipped 49.57 points, or 2.6 percent, to 1,881.77 on Monday. The index is now 14 points above its lowest level of the year, set Aug. 25. The Dow Jones industrial average lost 312.78 points, or 1.9 percent, to 16,001.89. The Nasdaq composite slumped 142.53 points, or 3 percent, to 4,543.97.

ENERGY: Benchmark crude added 4 cents to $44.47 in electronic trading on the New York Mercantile Exchange. It fell $1.27 to close at $44.43 a barrel in New York on Monday. Brent Crude, a benchmark for international oils, was up 1 cent to $48.02.

CURRENCIES: The dollar fell to 119.61 yen from 119.92 yen in the previous global trading session. The euro rose to $1.1253 from $1.1233.