Asian Stocks Slide On Lower U.S. Consumer Spending
On the first day of the trading week in Asia, stocks are off to a bleak start. Much of the angst stems from worries that consumer spending in the world's largest economy will affect Asia's exports of clothing, autos, and electronics.
Asia's benchmark, the MSCI Asia Pacific index lowered by 1.7 percent by a quarter past seven Tokyo evening.
Bloomberg News quoted Kiyoshi Ishigane at Mitsubishi UFJ Asset Management Co. in Tokyo as saying, It's inevitable that we'll see more economic indicators that show U.S. consumer spending is worsening,''
He added, ``It's highly likely a slowdown in the U.S. economy will last longer than anticipated.''
Toyota, which counts on more than 50 percent of its operating profits from North American operations, fell to its lowest numbers in two months.
Also among decliners, outsourcing giant Infosys Technologies in Mumbai fell on a report confirming a decline in consumer spending to the lowest in 16 years.
The decline in the region was also affected by announcement by the No.3 department store in the U.S., J.C.Penney slashing its earnings forecast.
Incidentally, the Nikkei average in Tokyo dipped 2.3 percent as most Asian gauges retreated Monday.
Bloomberg reports that approximately$3.9 trillion in value has been erased from world stock exchanges.
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