Asia Stocks Drop on Growth, Credit Loss Concerns; US recession fears

[marmar]

OP's note: As I'm posting this, the Nikkei is down more than 550 points.


from Bloomberg:



Asian Stocks Drop on Growth, Credit Loss Concerns; Toyota Falls

By Chen Shiyin and Emma O'Brien

March 3 (Bloomberg) -- Asian stocks had the biggest drop in almost two weeks, led by banks and automakers, on deepening concerns credit losses at financial companies will increase and the U.S. economy is headed for a recession.

Commonwealth Bank of Australia retreated to the lowest in more than two years in Sydney, while Mitsubishi UFJ Financial Group Inc. fell in Tokyo after UBS AG said losses in credit markets may reach $600 billion. Toyota Motor Corp., the world's second-largest automaker, dropped after a gauge of U.S. business activity fell to the lowest level since 2001 and the yen strengthened against the dollar.

``We're still in the middle of a profit re-rating which will inevitably result from the slowdown that we're seeing in the U.S.,'' said Tom Murphy, who helps manage the equivalent of about $1 billion at Deutsche Bank AG in Sydney. ``Weakness in stocks is and will continue to extend beyond the financials over the next few months.''

The MSCI Asia Pacific Index lost 2.9 percent to 143.21 as of 11:01 a.m. in Tokyo, set for its biggest decline since Feb. 20. Financial stocks were the biggest drag. The benchmark erased its 2.8 percent gain in February, which came amid speculation a bailout of U.S. bond insurers will prevent credit losses from spreading.

Japan's Nikkei 225 Stock Average slipped 4 percent to 13,057.09, its biggest loss since Feb. 6. Australia's S&P/ASX 200 Index slumped 3.1 percent.

Thailand's stocks may advance today after the central bank removed restrictions on capital entering the country to boost economic growth two months ahead of schedule. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aY_Ga9BL5cGs&refer=home

[nadinbrzezinski]

1. Let's see how well things go tomorrow

all I can say is buckle up

[tekisui]

2. Friday was a 2.5% drop.

Last time the Asian Markets dipped, we had a holiday to prepare and still dove hard.

The roller coaster rolls on, we could get a new low on the poor preforming year.

[nadinbrzezinski]

7. I know, perhaps we will breach the 11,999 point

which is a psychological barrier

But her, the economy is booming, haven't you heard the Preznit on this?

:sarcasm:

[Double T]

3. We're heading into the Greatest Depression.

Until corporate corruption is dealt with and their control of markets is rescinded, our economy and financial system will continue to deteriorate.

[Vincardog]

6. Bingo. We are fucked until we get rid of the parasitic corporate welfare queens and their fascist

enablers. Lets start NOW and kick the GOP to the curb and let them take the DLC with them.

[Tashca]

4. I've been watching this..

Last time I saw this the Fed. cut the interest by .75% in an emergency meeting...
Will be interesting tomorrow....

[dweller]

5. March Meltdown

it's been predicted various times that it would be around March.


dp

Southbound Train
Liberty, laughing and shaking your head
Can you carry the torch that'll bring home the dead?
To the land of their fathers whose lives you have led
To the station at the end of the town
On the southbound train going down..

Equality, quietly facing the fist
Are you angry and tired that your point has been missed?
Will you go in the back-room
And study the list
Of the gamblers using the phone
On the southbound train going down

Fraternity, failing to fight back the tears
Will it take an eternity breaking all the fears?
And what will the passenger do when he hears-
That he's already paid for the crown
On the southbound train going down.

Graham Nash