HONG KONG —
Most Asian stock markets sank Friday, weighed down by fears over the so-called U.S. “fiscal cliff” that’s seen as a big threat to the economic recovery. Chinese stocks edged higher as investors awaited economic data they hoped would show a pickup in growth.
Japan’s Nikkei 225 index fell 0.8 percent to 8,768.43 and Hong Kong’s Hang Seng shed 0.4 percent to 21,472.65. South Korea’s Kospi retreated 0.5 percent to 1,905.33.
Australia’s S&P ASX 200 dropped 0.5 percent to 4,461.30 after the central bank released a downbeat assessment of the country’s economy.
The slump in major Asian stock markets mirrored the trend in markets worldwide as investors have refocused on challenges to the world economy following President Barack Obama’s re-election. Many worry that gridlock in Washington will prevent the president and Congress from reaching a deal before the package of tax increases and government spending cuts kicks in on Jan. 1.
Investors also have renewed fears about Europe’s lingering debt crisis. European Central Bank President Mario Draghi warned that the economy of the 17 nation grouping that uses the euro remains weak and will struggle to grow even with “visibly improved” confidence among the currency union’s financial markets.
Asian stocks are “going to be very much driven by the U.S. and Europe,” said Peter Esho, chief market analyst at City Index Asia Pacific in Sydney. But “I think things will change in the first quarter of 2013 with a coordinated Chinese response” to the country’s painful slowdown, he said.
Mainland Chinese stocks were slightly higher as investors awaited reports on industrial production, fixed asset investment and retail sales that would provide the latest update on the slowdown in the world’s second biggest economy.
The Shanghai Composite Index crept up 0.1 percent to 2,074.53 and the Shenzhen Composite Index edged up 0.1 percent to 833.05. The Chinese benchmarks seesawed between gains and losses after an earlier report showed October inflation eased to 1.7 percent, giving room for more stimulus.
“Markets may stabilize and possibly rebound on Chinese data for October, which we expect to show acceleration of output amid muted price pressures,” strategists at Credit Agricole CIB wrote in a research note.
Australian stocks fell after the country’s central bank said in a quarterly report it was trimming growth forecasts as mining companies scale back investment plans because of declining iron ore and coal prices and the strong currency.
On Wall Street, the Dow closed down nearly 1 percent to 12,811.32, bringing its two-day loss to 434 points. The Standard and Poor’s 500 index fell 1.2 percent to 1,377.51 and the tech-heavy Nasdaq composite slipped 1.4 percent to 2,895.58.
In currencies, the euro weakened to $1.2774 from to $1.2750 late Thursday. The dollar strengthened to 79.51 Japanese yen from 79.38 yen.
Crude oil for December delivery was up 21 cents to $85.30 in electronic trading on the New York Mercantile Exchange. The contract rose 65 cents to close at $85.09 on Thursday.
Business
Asian stocks sink on US fiscal cliff fears
- Business
-
-
Stock market falls as traders fear stimulus cuts
Stocks are falling after the Federal Reserve gave a slightly more optimistic outlook for the U.S. economy, which investors took as a hint that the bank was nearer to a decision to reduce its economic stimulus program.
-
Top UK court overturns sanctions on Iranian bank
Britain’s Supreme Court quashed sanctions against an Iranian bank penalized over its alleged links to Iran’s nuclear weapons program, saying Wednesday that Bank Mellat had been arbitrarily singled out.
-
Netflix to expand to Netherlands later this year
Netflix is going Dutch.
-
World Bank highlights climate-poverty link
The World Bank says it will increasingly view its efforts to help developing countries fight poverty through a “climate lens.”
-
Japan formally OKs new nuke safety requirements
Japan’s nuclear watchdog formally approved a set of new safety requirements for atomic power plants Wednesday, paving the way for the reopening of facilities shut down since the Fukushima disaster in a move critics charge is too hasty.
-
World Food Prize goes to 3 biotech scientists
The World Food Prize Foundation on Wednesday took the bold step of awarding this year’s prize to three pioneers of plant biotechnology whose work brought the world genetically modified crops.
-
Investors look for answers on economy from Fed
Worry and speculation have consumed investors since Chairman Ben Bernanke spoke to Congress last month about the Federal Reserve’s drive to keep long-term interest rates at record lows.
-
Dish won’t submit revised bid for Sprint
Satellite TV operator Dish Network Corp. said Tuesday it would not submit a revised bid for Sprint, leaving the path open for the wireless carrier to accept what it already considers a superior offer from Japan’s Softbank.
-
West Virginia mine safety lab creates disasters to train
Orange flames lick at the roof of the coal mine, heat building and visibility dropping as smoke begins to fill the underground passageway.
-
Stocks edge lower as investors wait on Fed
Stocks edged lower in early trading on Wall Street Wednesday as investors waited for word from the Federal Reserve.
- More Business Headlines
-
James Gandolfini Dies at Age 51
Fmr. TWA Flight 800 Investigators Want New Probe
Raw: Heat, Spurs Back on Court Ahead of Game 7
Dolce and Gabbana Convicted of Tax Evasion
Paris, Prince Depositions Used in Jackson Trial
Coiffed Cattle Get Their Close-up
In Berlin, Obama Channels Cold War Activism
Police at Patriots Tight End's Home for 2nd Day
Fed Suggests Bond Purchases Could Slow
AP: DOJ Broke Own Rules Seizing Phone Records
Raw: Baby White Rhino Debuts at Australian Zoo
Time Lapse: Rebuilding Bridge Post-collapse
Ohio Woman Accuses 3 of Holding Her Captive
Hunt for Ex-Teamster Boss Hoffa's Remains Ends
