MW: Asia stocks fall as Moody’s warns on U.S. debt
By V. Phani Kumar and Virginia Harrison, MarketWatch
TAIPEI (MarketWatch) — Most Asian markets weakened Thursday as Moody’s Investor Service’s review of U.S. credit ratings for a possible downgrade prompted caution, pressuring financial stocks and some exporters.
The weak performance for shares came even as U.S. Federal Reserve Chairman Ben Bernanke indicated the Fed may once again step in to prop up the economy. Read full story on Bernanke’s remarks.
“Moody’s report will likely weigh on Asian markets in Thursday’s trading, in particular on insurance sector. One notch downgrade to Aa from Aaa is the most likely scenario, if Moody’s decides to take action after their review,” Cantor Fitzgerald analysts wrote in a report. Read full story on Moody’s warning.
Japan’s Nikkei Stock Average JP:NIK -0.25% ended the day 0.3% lower, South Korea’s Kospi KR:0100 +0.02% shed 0.5% in late trading, Australia’s S&P/ASX 200 index AU:XJO -0.53% lost 0.6% lower and Hong Kong’s Hang Seng Index HK:HSI -0.44% declined 0.6%.
China’s Shanghai Composite CN:000001 +0.54% fluctuated between gains and losses, and was up 0.2% in afternoon trading, while Taiwan’s Taiex slipped 0.1%, surrendering early gains.
By V. Phani Kumar and Virginia Harrison, MarketWatch
TAIPEI (MarketWatch) — Most Asian markets weakened Thursday as Moody’s Investor Service’s review of U.S. credit ratings for a possible downgrade prompted caution, pressuring financial stocks and some exporters.
The weak performance for shares came even as U.S. Federal Reserve Chairman Ben Bernanke indicated the Fed may once again step in to prop up the economy. Read full story on Bernanke’s remarks.
“Moody’s report will likely weigh on Asian markets in Thursday’s trading, in particular on insurance sector. One notch downgrade to Aa from Aaa is the most likely scenario, if Moody’s decides to take action after their review,” Cantor Fitzgerald analysts wrote in a report. Read full story on Moody’s warning.
Japan’s Nikkei Stock Average JP:NIK -0.25% ended the day 0.3% lower, South Korea’s Kospi KR:0100 +0.02% shed 0.5% in late trading, Australia’s S&P/ASX 200 index AU:XJO -0.53% lost 0.6% lower and Hong Kong’s Hang Seng Index HK:HSI -0.44% declined 0.6%.
China’s Shanghai Composite CN:000001 +0.54% fluctuated between gains and losses, and was up 0.2% in afternoon trading, while Taiwan’s Taiex slipped 0.1%, surrendering early gains.
