European – Asian Stocks Tumble as US Jobs Report Fuels Recession Fears
Asian stocks fell for a second day, led by mining companies and exporters, after U.S. unemployment stagnated in August, fueling concern that the world’s largest economy may be headed for a recession.
Samsung Electronics Co., a South Korean exporter of consumer electronics that gets 22 percent of its revenue from America, sank 3.1 percent in Seoul. Toyota Motor Corp., the world’s biggest carmaker by market value, declined 1.6 percent in Tokyo. Clothier Fast Retailing Co. sank 3.6 percent after reporting sales fell at its Uniqlo stores. BHP Billiton Ltd., the world’s largest mining company and Australia’s No. 1 oil producer, retreated 1.1 percent after crude and metal prices slipped.
The MSCI Asia Pacific Index dropped 1.3 percent to 122.60 as of 9:27 a.m. in Tokyo. More than six stocks fell for each that rose on the gauge. The measure slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating.
“People didn’t expect an increase in U.S. jobs would come to a halt, which was a negative surprise,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc.
European stocks also fell today.
European shares fell sharply on Monday amid renewed fears over the euro zone debt crisis and a warning from Deutsche Bank’s CEO on the outlook for banks.
The DAX [.GDAXI 5246.18 -292.15 (-5.28% ) ] led the losers, falling by over 5 percent, while stocks in London and Paris also fell sharply.
The biggest loser in Germany is Deutsche Bank [DB 36.27 -2.33 (-6.04% ) ] after CEO Joseph Ackermann told a banking conference that the euro zone debt crisis could kill weak banks and stunt profits for the rest of industry for years to come.