Thursday, June 2, 2011

Asia: Besieged by political and US economic gloom

LONDON (SHARECAST) - Uncertainty about the future of Japan’s Prime Minister Naoto Kan sent stocks in Tokyo sharply lower on Thursday.

Naoto Kan indicated that he would resign once the country's post earthquake crisis was over. He later survived a no-confidence vote after offering to step down.

Gloomy US economic data sparked concern about a slowdown in the world's largest economy and sent many Japanese exporters into the red.

Toyota took a hammering after weak US economic data. Its shares slumped 3.4%. Honda lost 2.56% after data showed US manufacturing slowed to its lowest level in May since 2009.

A separate report showed private employers in the US hired fewer than expected in May.

Fanuc was down 3.1%, Softbank retreated 3.49%, Sony fell 1.56% while Canon surrendered 0.76%.

Banks also lost ground with shares of Mitsubishi Tokyo down 1.58%. Mizuho Financial declined 0.79% while Sumitomo Mitsui tumbled 1.27%.

The Nikkei benchmark Nikkei 225 index fell 164 points at 9,555.

The Hang Seng lost 1.61% after disappointing US economic data sparked concern about Chinese exports.

Energy plays also weighed as oil prices headed lower. PetroChina fell 2.66% in Hong Kong and Cnooc fell 2.6%.

Banks also came under pressure. HSBC fell 1.84% while ICBC dropped 1.3%.

The Hang Seng fell 372 points at 23,254.

Source: http://www.sharecast.com

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