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Japanese stocks fell for a third day, pushing the benchmark Nikkei 225 Stock Average to the lowest close since April 2009, as Europe’s worsening debt crisis saps demand for riskier assets.
Mitsubishi UFJ Financial Group Inc. (8306) fell 2.7% after the cost of insuring against default on European sovereign and financial debt surged to records.
Toshiba Corp. (6502) sank 5.1% after a newspaper said the company is in talks to buy Shaw Group’s 20 percent stake in Westinghouse Electric, a reactor builder.
Kansai Electric Power Co. jumped 3.5% after Japan’s new prime minister indicated his support for atomic energy.
The Nikkei 225 has lost about 16% this year amid concern U.S. growth is sputtering and Europe’s debt crisis will damage the banking system, damping demand in two of Japan’s biggest export markets
European stocks declined for a third day, reaching the lowest in more than two years, as deepening concern that the region’s debt crisis will derail the recovery overshadowed better-than-estimated growth in U.S. services.
UniCredit SpA (UCG) and Societe Generale SA fell more than 4% as a gauge of banks slid to the lowest level since March 2009.
Caja de Ahorros del Mediterraneo (CAM) slumped 8.4% after posting a loss.
Bayer AG (BAYN) plunged 7.5% after U.S. regulators asked for more data on the blood thinner Xarelto.
Factory orders in Germany, Europe’s largest economy, fell more than economists forecast in July, led by a drop in export demand as the global economy cooled, a report today showed.
HSBC Holdings Plc cut its forecast today for global economic growth for the next two years and said the efficacy of any further stimulus measures will be limited. The world economy will grow 2.6% this year and 2.8% in 2012, compared with estimates published in June of 3% and 3.4% respectively
U.S. stocks fell, giving the Standard & Poor’s 500 Index its longest slump in almost a month, amid concern that Europe’s debt crisis is worsening.
Corporate news: Hewlett-Packard Co. (HPQ) and General Electric Co. (GE) posted declines of at least 3.6%, pacing losses among companies most-tied to economic growth.
Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM) decreased more than 3.3% on concern about a global financial crisis.
The two lenders were among 17 banks sued by the U.S. to recoup $196 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac. The Federal Housing Finance Agency, on behalf of Fannie Mae and Freddie Mac, filed 17 lawsuits on Sept. 2 in New York state and federal courts and in federal court in Connecticut.
Exxon Mobil Corp. (XOM) and Alcoa Inc. (AA) lost at least 1.8% on speculation demand for commodities will slow.
Economy: The Institute for Supply Management’s index of non-manufacturing businesses increased to 53.3 in August from 52.7 a month earlier.
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