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 China"s economy.
KEEPING SCORE: Japan"s benchmark Nikkei 225 dropped 4.1 percent to 16,930.84 and Australia"s S&P/ASX 200 lost 3.7 percent to 4,925.90. Markets in South Korea and Taiwan were closed for holidays. Hong Kong"s Hang Seng slid 3.4 percent to 20,468.63. The Shanghai Composite in mainland China shed 2.3 percent to 3,028.40. Singapore, Thailand and Indonesia fell while the Philippines was slightly higher.
SOUR COCKTAIL: Analysts say investors have been buffeted by a slew of bad news. Commodity trading company Glencore dived 29 percent in London as investors increasingly doubt its financial strength in a time of weak commodity prices. 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. 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: "Investors are bailing out of resource stocks following further pressure on London-listed commodity house Glencore," said Michael McCarthy, chief strategist at CMC Markets in Sydney. "Analysts fretted over its debt pile, and its share price is now down more than 80 percent on its 2015 high. Hyperbole is in overdrive as commentators call it the resources sector Lehman Brothers moment."
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 lost 1 cent to $44.42 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 2 cents to $48.03.
CURRENCIES: The dollar fell to 119.47 yen from 119.92 yen in the previous global trading session. The euro rose to $ 1.1271 from $1.1233.
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Source: businessinsider.com
Asian stocks extend global sell-off, Tokyo down 4 percent
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