Investors took cues from Wall Street where shares slid Friday as corporate results continued to underwhelm. Friday's losses saw the Nasdaq Composite Index fall to its lowest level since August.
"Stock markets were becoming increasingly vulnerable to a correction after the consistent rally of recent weeks. Against this background some disappointing U.S. earnings announcements on Friday coupled with a lack of specific progress at the Euro leaders' conference proved the catalyst for a significant sell off," Ric Spooner, chief market analyst at CMC Markets said in a note to clients.
Japan's Nikkei Stock Average fell 1.0% as investors took profit on last week's 5.5% rally, while a slightly wider-than-expected trade deficit weighed on exporters.
Data released Monday showed Japan posted a Y558.6 billion trade deficit in September, slightly wider than the Y547.9 billion deficit expected. Exports to China dropped 14.1% on-year amid the latest territorial flare-up between Tokyo and Beijing, sharper than the previous month's 9.9% decline and marking the fourth consecutive month of contraction.
Major Japanese exporters were weaker following the dismal trade data: Toyota Motor fell 0.8%, Nintendo dropped 1.5% and Canon skidded 1.8%.
Mitsubishi Corp. tumbled 3.2% in Tokyo after the firm cut its outlook for the financial year ending in March citing a prolonged strike in Australia and weakness in commodities prices.
Australia's S&P/ASX 200 fell 0.8% with resources plays leading broad-based declines after copper and gold prices fell sharply Friday; Rio Tinto dropped 2.2%, BHP Billiton lost 1.1% and Fortescue Metals Group declined 2.8%.
South Korea's Kospi Composite fell 1.1%.
Energy plays were lower across the region after crude oil prices declined more than 2.0% Friday. SK Innovation dropped 2.7% in Seoul, Santos fell 1.0% in Sydney, while Inpex lost 1.7% in Tokyo. November Nymex crude oil futures were eight cents lower at $89.97 per barrel on Globex.
The euro rose slightly Monday, recovering some of Friday's losses which came as the fiscal uncertainty surrounding Spain and Greece continued to weigh on the common currency. The euro was at $1.3039 against the dollar, from $1.3023 late Friday in New York, and at Y103.43 against the yen from Y103.28.
Feel free to forward this Op Ed and follow our Blog stock market news today
No comments:
Post a Comment