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Asian stocks fell, with the regional benchmark retreating from its highest close since May, after Japan’s exports fell a third month and on signs China’s manufacturing may contract an 11th month, adding to concern the global economic slowdown is deepening.
Nikkei 225 9,086.98 -145.23 -1.57%
S&P/ASX 200 4,397.2 -21.16 -0.48%
Shanghai Composite 2,026.45 -41.38 -2.00%
Kyocera Corp., a maker of electronic parts that gets more than half of its sales outside Japan, slid 2.9 percent.
Nippon Telegraph & Telephone Corp. surged 7.1 percent after Japan’s leading fixed-line phone company said it plans to buy back as much as 3.4 percent of its shares.
Billabong International Ltd. slumped 6.9 percent as a second bidder withdrew from the sale of Australia’s largest surfwear company.
European stocks declined for the third time in four days after a report signaled that Chinese manufacturing will contract for an 11th month, adding to concern the global economic slowdown is deepening.
China’s manufacturing industry will contract in September, according to the preliminary reading of a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics. The result of 47.8 compared with a final 47.6 last month. A reading above 50 indicates expansion.
A composite index for services and manufacturing activity in the euro area fell in September more than economists had projected. The PMI slipped to 45.9, its lowest since June 2009, from 46.3 last month.
National benchmark indexes declined in 12 of the 18 western-European markets. Germany’s DAX slid less than 0.1 percent, while the U.K.’s FTSE 100 and France’s CAC 40 each dropped 0.6 percent.
BHP Billiton Ltd. and Anglo American Plc declined 2.3 percent to 1,954.5 pence and 4.4 percent to 1,944 pence, respectively, contributing the most to a retreat by a gauge of mining companies following the Chinese manufacturing report.
Vedanta Resources Plc, India’s largest copper producer, fell 2.4 percent to 1,054 pence. Evraz Plc, the mining company and steelmaker partly owned by billionaire Roman Abramovich, slumped 6 percent to 260.8 pence.
Daimler retreated 2 percent to 39.23 euros as the world’s third-largest luxury vehicle maker said earnings from its car division will drop in the second half of 2012. Bayerische Motoren Werke AG, the biggest manufacturer of luxury cars, lost 2.9 percent to 59.44 euros.
Major U.S. stock indexes are under pressure on concerns about further deterioration in the global economy.
The cause of these concerns were data on business activity in the industry in China and the U.S. labor market.
According to preliminary data, the manufacturing PMI from HSBC China to the end of September once again went below 50, indicating a decline in activity in the sector. Index value below 50 points is from August of last year.
Not pleased with the market participants data on the number of applications for unemployment benefits, which came above forecasts (figure out at 382 thousand vs. 373 thousand).
Negatives also added data on the index of consumer confidence in the euro area, which in September fell to -26 vs. -24 and values from -26.4 in August.
In the composition of the index DOW components show a mixed trend. Leaders are stocks Kraft Foods (KFT, +1.86%). More than the others fell in the share price Alcoa (AA, -2.32%).
Most of the major economic sectors are in the red. In the black sectors are utilities (+0.3%) and health (0.3%). Sector fell more than the rest of conglomerates (-0.7%) and financial (-0.7%).
Bank of America (BAC) fell by 1.1% under the pressure of the news that the bank is going to cut 16,000 people by the end of the year.American food group ConAgra Foods jumped by 6.2% - the company reported a better-than-expected quarterly profit due to recent purchases and successful marketing.
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