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Business Title: Asian Stocks, U.S. Futures Fall on Growth Concerns; Yen Rises By Darren Boey and Monami Yui July 6 (Bloomberg) -- Asian stocks fell to the lowest in almost a month and U.S. equity futures dropped on concern growth is slowing in the U.S., Europe and China. The yen increased against the euro and Treasuries advanced. The MSCI Asia Pacific Index lost 0.2 percent to 111.60 as of 11:15 a.m. in Tokyo, set to close at the lowest since June 10. Standard & Poor’s 500 Index futures fell 0.6 percent, suggesting U.S. equities will extend a two-week drop when markets resume trading today after a holiday. The yen climbed 0.5 percent to 109.46 per euro. Ten-year Treasury yields fell 5 basis points to 2.93 percent. Investors became more risk averse after Markit Economics reported growth in Europe’s services and manufacturing industries slowed for a second month in June. Economists expect an Institute for Supply Management gauge due later today to show U.S. service industries grew at a slower pace last month. China’s property market is beginning a “collapse,” Harvard University Professor Kenneth Rogoff told Bloomberg Television. “We’re not seeing any economic indicators to boost investor confidence,” said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management (Japan) Inc., which manages $17 billion. “Markets are marking time in search of an excuse to move upward.” The MSCI Asia Pacific Index dropped for the fifth time in six days, with five stocks falling for every two that rose. Japan’s Nikkei 225 Stock Average fell 0.9 percent, the biggest decrease among benchmark gauges in the Asia-Pacific region. South Korea’s Kospi index lost 0.8 percent. European Sales Canon Inc., a camera maker that counts Europe as its biggest market, declined 0.9 percent. Sharp Corp., which gets more than half of its sales abroad, retreated 1.3 percent. A composite index based on a survey of euro-area purchasing managers in Europe’s services and manufacturing industries fell to 56 from 56.4 in May, London-based Markit Economics said yesterday. Shipping companies slumped after the Baltic Dry Index, a measure of commodity-shipping costs, fell 2.8 percent yesterday for a 27th consecutive retreat, the longest losing streak since August 2005. Kawasaki Kisen Kaisha Ltd., Japan’s third biggest shipping line by sales, slumped 2.8 percent. Korea Line Corp. lost 1.8 percent. Oil producers declined after crude-oil prices dropped for the sixth straight day on concern energy demand will fall. Futures in New York lost 0.9 percent to $71.51 a barrel. BHP Billiton Ltd., Australia’s biggest oil producer, sank 1.3 percent. Inpex Corp., Japan’s largest oil explorer, slid 2.5 percent. ‘Under Pressure’ “Crude has come under a bit of pressure because of worries about the global economy,” said Peter McGuire, managing director of CWA Global Markets Pty in Sydney. Oil has matched its longest pullback since a six-day drop through May 18 and has declined 10 percent since the start of the year. The yen strengthened against all major peers and benchmark Treasury yields neared the lowest this year as signs global economic growth is slowing fueled demand for the safest assets. The yen appreciated to 87.52 against the dollar from 87.77 yen yesterday. Japan’s currency reached 86.97 to the dollar on July 1, the most since Dec. 2. The dollar strengthened 0.4 percent to $1.2493 per euro. The yield on 10-year Treasuries is near the 2.8793 percent level reached on July 1, the least since April 2009. “People are still afraid of investing in risky assets,” said Kazuaki Oh’e, a debt salesman in Tokyo at Canadian Imperial Bank of Commerce, the North American nation’s fifth-largest lender. “Money is heading into the safe haven.” The Institute for Supply Management’s index of U.S. non- manufacturing businesses, which make up about 90 percent of the economy, fell to 55 from 55.4 in May, according to a Bloomberg News survey. Readings above 50 signal expansion. South Korea’s won slipped 0.6 percent to 1,230.75 per dollar, falling by the most in a week. The Malaysian ringgit dropped 0.6 percent to 3.2270 per dollar. “We’re seeing a normal post-crisis struggle in the won,” said Philip Wee, a senior currency economist from DBS Bank Ltd. in Singapore. “The key thing is to see how we ride through this weakness.”
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#1. To: BS, Os (#0)
Looks like another Obama is shaping up on Wall St tomorrow....nice work you useless O'PILES!!
Am I a liberal or a conservative? - Fredo Mertz
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