Asian Stocks Plunge as Service Report Points to U.S. Recession

[marmar]

from Bloomberg:



Asian Stocks Drop as U.S. Service Industries Shrink; BHP Falls

By Chen Shiyin and Ian C. Sayson

Feb. 6 (Bloomberg) -- Asian stocks fell for a second day after a contraction in U.S. service industries fueled concern that the world's largest economy is in a recession.

Nintendo Co. and Li & Fung Ltd. led declines among companies with U.S. sales. BHP Billiton Ltd. slumped the most since December 1987 after it raised a bid for Rio Tinto Group and reported a drop in profit. PetroChina Co. led commodity producers lower after oil and metals prices retreated.

``The outlook for earnings in Asia will remain suspect until the extent of a U.S. slowdown is determined,'' said Patrick Manaloto, who helps oversee $5.5 billion of assets at BPI Asset Management Inc. in Manila. ``Some investors believe that the contraction in the U.S. services sector is a clear sign of recession.''

Hong Kong's Hang Seng Index slid 5.4 percent, leading regional declines ahead of Lunar New Year holidays. The MSCI Asia-Pacific Index slipped 3 percent to 142.59 as of 2:34 p.m. in Tokyo. Japan's Otsuka Corp., a computer information system developer, slid after forecasting lower profit.

The Nikkei 225 Stock Average lost 3.8 percent to 13,218.71, poised for the biggest decline since Jan. 22. Singapore's Straits Times Index slumped 3.5 percent. Markets in China, South Korea, Taiwan and New Zealand are already closed for holidays.

MSCI's Asian index has dropped 9.8 percent this year, while the Nikkei is down 14 percent, amid concern a U.S. slowdown will drag on the region's economies. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a88Uvb77YOtc&refer=home

[ursi]

1. what a mess ...time for another war!

[DCKit]

2. You KNOW they're on the phone to the WH asking...

"WTF are you asswipes doing over there???"

Unfortunately, DickieGeorge doesn't play well with others and the last thing they're ever going to do is accept constructive criticism from ferners.