Asian stocks tumble in early trade; Nikkei down 1.8%

Forexpros – Asian stocks fell sharply in early trade Wednesday, as investors paid less attention to the end of the U.S. debt impasse and more to signs of a slowdown in global economic growth.

During early Asian trade, Hong Kong’s Hang Seng Index fell 2.6% to 21,883, Japan’s Nikkei 225 Index gave up 1.8% to 9,676.81, Australia’s S&P/ASX 200 declined 1.79% to 4,354.20, and South Korea’s Kospi, slumped 2.21% to 2,074.43.

Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange shed 1.83% to 828.49.

The drop in Asian shares followed steep declines on Wall Street as U.S. stocks posted an eighth straight day of losses, their longest losing streak since October 2008

The Dow Jones Industrial Average sank 2.2% to 11,866.62, its worst one-day drop since June 1. The Nasdaq Composite Index surrendered 2.8% to 2,669.24 and the S&P 500 fell 2.6% to 1,254.05.

The U.S. Bureau of Economic Analysis announced Tuesday its seasonally adjusted core Personal Consumption Spending (PCE) price index rose by 0.1% in June, below market expectations of a 0.2% gain for the month.

In a separate report, the Bureau of Economic Analysis said U.S. personal income rose by 0.1% in June, the smallest gain since last November, while personal spending unexpectedly dropped 0.2%, the first decline in nearly two years.

Meanwhile, European finance ministers continued to work on details of a proposed bailout fund for debt threatened euro-zone members with Spain and Italy topping concerns.

Asian technology exporters and financial issues were among the hardest hit in the region. NEC Corp. tumbled 2.89%, Advantest Corp. sank 3.4%, and Sumitomo Mitsui Trust Holdings Inc. declined by 3.38%.

In Sydney, Australia & New Zealand Banking Group surrendered 2.4%..

The outlook for European stocks was mixed. France’s CAC 40 futures was lower by 0.44% to 3,468.10, the FTSE 100 futures added 0.13% to 5,611.60, while Germany’s  DAX futures fell 0.18% to 6,699.90.









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