Quantcast

Asia stocks, euro fall on U.S. growth gloom

Sep 4, 2011, 10:22 p.m.
A man waits to cross a street in front of an electronic board displaying graphs of major stock market indices outside a brokerage in Tokyo September 5, 2011. REUTERS/Yuriko Nakao

EURO WOE

In currency markets, the euro hit its lowest level in three weeks against the dollar while currencies affected by expected demand for commodities, such as the Australian dollar, also came under pressure.

A court ruling in Germany on Wednesday may limit the ability of the euro zone's biggest economy to finance rescues of crisis-hit countries such as Greece.

"Concerns about high debt in Europe has resurfaced, and those poor payrolls results certainly got people worried about the U.S. economy and the global economy as well," said Joseph Capurso, strategist at Commonwealth Bank in Sydney.

The euro eased to $1.4138, reaching lows not seen since August 11. It was later trading around $1.4165, down from $1.4198 late in New York on Friday. This helped drive the dollar index <.DXY> back to one-month highs.

The yen firmed slightly to around 76.76 per dollar.

Japanese government bond September 10-year futures rose 0.46 point to 142.72, while the benchmark 10-year yield fell 4 basis points to 1.020 percent.

Gold held most of its gains, inching down around 0.4 percent to about $1,876 an ounce after jumping more than 3 percent on Friday.

Oil eased on concerns that a "double dip" recession would slow demand, with Brent crude falling 0.8 percent to $111.49 a barrel while U.S. crude eased around 0.9 percent to $85.65 a barrel.

(Additional reporting by Vikram Subhedar in Hong Kong, Ian Chua in Sydney and Lisa Twaronite in Tokyo; Editing by Kim Coghill and Ramya Venugopal)

Follow Me on Pinterest
  • Print
  • E-mail

Editor's Picks

Most Recent