JAPAN/SOUTH KOREA: Stocks in Asia drop after disappointing U.S. jobs data and worries of a possible economic crisis in Hungary

Record ID: 464997

  • Title: JAPAN/SOUTH KOREA: Stocks in Asia drop after disappointing U.S. jobs data and worries of a possible economic crisis in Hungary
  • Date: 8th June 2010
  • Summary: TOKYO, JAPAN (JUNE 7, 2010) (REUTERS) TOKYO STOCK EXCHANGE (TSE) BUILDING TSE EMPLOYEES WORKING MORE OF TSE EMPLOYEES WORKING CIRCLING ELECTRONIC STOCK BOARD ELECTRONIC STOCK BOARD ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE AT 9546.22 DOWN 354.97 TSE FLOOR TRADERS WORKING AT GAITAME.COM FOREIGN EXCHANGE TRADE FIRM TRADERS WORKING MONITOR SHOWING GRAPH MONITOR SHOWING EURO-YEN CURRENCY EXCHANGE RATE AT 108.35 YEN TO THE EURO ELECTRONIC BOARD MORE OF TRADERS WORKING SEOUL, SOUTH KOREA (JUNE 7, 2010) (REUTERS) VARIOUS OF ELECTRONIC BULLETIN AT KOREA EXCHANGE KOSPI INDEX BULLETIN VARIOUS OF WOMAN MONITORING COMPUTER BULLETIN LOBBY WITH STATUE OF BULL
  • Embargoed: 23rd June 2010 13:00
  • Keywords:
  • Topics: Finance
  • Reuters ID: LVA2JBHXCDGNKYN3LWS013ZZ0EQ5
  • Story Text: Stocks in Asia opened down on Monday (June 7) after disappointing U.S. jobs data further spooked investors already worried about a potential debt crisis in Hungary.
    Japan's Nikkei average fell more than 4 percent on Monday as the euro's fall to a more than eight-year low against the yen, sold shares across the board.
    Exporters such as Canon Inc were hit particularly hard, while Mitsui & Co and other trading houses slid after metals prices fell on Friday, with disappointing U.S. jobs data adding to doubts about the global economy.
    Worries that Europe's sovereign debt troubles could spread reignited after a Hungarian official said the country was at risk of a Greek-style crisis, sending the euro tumbling.
    The benchmark Nikkei slid 4 percent to 9,504.24, heading back towards a six-month low of 9,395.29 hit on May 27.
    The broader Topix shed 3.5 percent to 858.92.
    The euro fell as low as 108.20 on electronic trading platform EBS, an 8 and half year low.
    Many Japanese exporters have set their currency assumption rates for euro/yen at 120-125 yen for the year to March, and investors fret about a stronger yen as it eats into exporters' profits when repatriated.
    Market players said that while the disappointing U.S. jobs data contributed to the downward pressure, it was having less of an impact than the euro's tumble.
    Data showed the U.S. economy added 432,000 jobs last month, far fewer than the expected 513,000, with a large portion of those being temporary hirings for the U.S. census.
    Investors will also keep an eye on politics and policy as Naoto Kan, Japan's new leader, finalizes his cabinet.
    Kan has chosen fellow fiscal conservative Yoshihiko Noda, currently deputy finance minister, for the top finance portfolio.
    And Seoul shares also declined on Monday following losses on Wall Street, and pressured by weakness in U.S. job figures and renewed concern about the euro zone after news of a potential debt crisis in Hungary.
    The Korea Composite Stock Price Index (KOSPI) was down 2.49 percent at 1,622.73 points as of 0138 GMT.
    Foreign investors were sellers of a net 79.5 billion won ($66.16 million) worth of stocks, poised to snap two consecutive buying session.
    Losses were led by financials and key technology exporters amid renewed concerns about the economy.
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