Markets sink on global economy fears

Markets sink on global economy fears

Most Asian markets came under fresh selling pressure on Monday, while the dollar dipped and oil hit multi-year lows, following another round of losses on Wall Street fuelled by global growth concerns.

However, Shanghai pared initial heavy losses and Hong Kong ended in positive territory after Chinese official data showed a better-than-expected rise in the mainland's exports and imports.

Investors are warily watching events in Hong Kong as clashes erupted in the city between pro-democracy protesters and masked men, hours after police began removing barricades that have blocked some main roads for the past two weeks.

Shanghai, which sank more than 1% in early trade, ended down 0.36%, or 8.53 points, at 2,366.01.

Hong Kong reversed morning losses to close 0.24% higher, adding 54.84 points to 23,143.38.

Sydney gave up 0.63%, or 32.8 points, to close at 5,155.5 and Seoul ended 0.71% lower, easing 13.71 points to 1,927.21.

Tokyo was closed for a public holiday.

Global markets have felt the effect in recent weeks as traders fret over the state of the global economy, with China, the euro zone and Japan struggling even though the United States is clawing its way back to health.

The latest indicators on the global outlook came from Beijing on Monday, with official data showing September exports rose 15.3% year-on-year and imports climbed 7%.

The rise in exports accelerated from August's 9.4% and was ahead of the median forecast of 12.5%. The forecast had predicted a fall of 2.4% in imports, matching a surprise decline in August.

Customs spokesman Zheng Yuesheng attributed the improvement to a recovery in major economies and a strengthening of external demand.

"The good momentum is expected to continue in the fourth quarter," he added.

But while the figures beat expectations, traders are still worried about the strength of world's number-two economy.

Desmond Chua, market analyst at CMC Markets, told Dow Jones Newswires the data "was a lot more disappointing than we had expected" and "cements the view that China might be in for quite a hard landing".

On currency markets, the dollar eased to 107.36 yen from 107.65 yen in New York Friday, while the euro was at $1.2665 against $1.2627.

The single currency was also at 136.01 yen, from 135.97 yen.

The yen, which is considered a safe bet in times of turmoil, has rallied in the past as equities markets have fallen.

Wall Street's three main indices ended in the red on Friday. The Dow fell 0.69%, the S&P 500 tumbled 1.15% and the Nasdaq slumped 2.33%.

In Hong Kong dozens of masked men rushed barricades at the main pro-democracy site Monday, triggering clashes, hours after police had moved in to remove some barriers and shrink the site.

Taxi drivers, many of whom have voiced frustration with more than two weeks of protests that have blocked roads and caused traffic gridlock, added to the fray by converging on the site — beeping horns and shouting at demonstrators.

Oil prices tumbled again on pessimism about demand. US benchmark West Texas Intermediate for November delivery fell $1.45 to $84.37 — its weakest for two years — while Brent North Sea crude lost $1.79 to a four-year low of $88.42.

Gold was at $1,227.19 an ounce against $1,222.00 late Friday.

In other markets, Mumbai advanced 0.33% or 86.69 points to end at 26,384.07 points. Tata Power gained 2.90% to 85.10 rupees, while Mahindra & Mahindra lost 3.66% to 1,270.10 rupees.

Malaysia's main stock index fell 11.68 points or 0.65% to 1,797.20. Malayan Banking shed 0.7% to 9.63 ringgit, while Petronas Gas lost 2.8% to 21.36. Malaysia Airlines gained 2% to 0.26 ringgit.

Taipei tumbled 2.84%, or 255.05 points, to 8,711.39. Taiwan Semiconductor Manufacturing Co shed 3.6% to T$120.5 while leading chip design house MediaTek lost 4.05% to T$403.

Wellington fell 1.05%, or 55.09 points, to 5,170.05.

Air New Zealand closed down 2.13% at NZ$1.84 and Fletcher Building was off 0.57% at NZ$8.67.

Manila plunged 2.78%, or 199.26 points, to 6,968.09.

Alliance Global fell 4.96% to 24.90 pesos while Ayala Land dived 4.62% to 32 pesos. GT Capital shed 2.78% to 1,050 pesos.

Jakarta ended down 1.01%, or 49.91 points, at 4,913.05.

Auto company Astra International fell 2.31% to 6,350 rupiah, while cement maker Semen Indonesia gained 1.68% to 15,100 rupiah.

Singapore closed 0.67%, or 21.72 points, lower at 3,202.15. DBS Bank fell 1.32% to finish at S$17.99 and Singapore Telecom ended 0.80% lower at S$3.71.

The SET lost 0.67% or 10.37 points to end at 1,542.35. Giant oil company PTT fell 3.30% to 352.00 baht, while Bangchak Petroleum dropped 2.90% to 33.50 baht.

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