U.s. economy entering recession : AOL Video feed

Asia stocks slide

Mon, 26 May 2008 09:18:27 -0400

Asia stocks slid on Monday with investors worried about rising inflation and sluggish U.S. economic growth. Japan's benchmark Nikkei fell 2.3 percent (13,690) its biggest fall in six weeks. Shares outside Japan hit a one month low as investors worried a weak U.S. economy would dent demand for Asian exports such as TV screens and electronic gadgets. Telephone giant China Mobile was a top loser. Investment bank Goldman Sachs downgraded shares in the world's largest wireless carrier to "sell" after a sector wide restructuring plan announced by Chinese authorities to heighten competition. Korea's Samsung Electronics also tumbled. The world's second largest mobile phone maker was hurt by talk that competitor Nokia may cut prices and re-enter the South Korean market. Investors are waiting for data from both the euro zone and the United States later in the week. With oil prices up 38 percent so far this year, stock investors have been spooked by surging inflation. Consumers are also taking a hit from rising oil prices. Over the weekend, Indonesia's government jacked up fuel prices with other Asian countries also expected to follow suit. Tara Joseph-Hui reporting for Reuters. COMPANIES MENTIONED:

Australian Bank Eyes Asia

Fri, 20 Feb 2009 09:43:24 -0500

Growing gloom about the U.S. economy and fears it may nationalise banks made financial stocks the biggest losers in Asian markets. But Australia’s No. 4 lender, ANZ, said it is eyeing acquisition opportunities in Asia after the region's banks fell as much as 60 percent last year and RBS assets were a distinct possibility. Royal Bank of Scotland announced it will sell its Asian operations and U.S. Charter One commercial banking as it tries to shore up its home business. Exporters failed to take advantage of a weak yen as fears grow about the state of the Japanese economy, but South Korean carmaker Hyundai is adding to its popular incentive programme under which the South Korean automaker allows consumers in the U.S. to return newly purchased cars if they lose their jobs. It will now cover three months of car payments while the buyer looks for a new job and credited the scheme for the 14 percent rise in demand in January even as the U.S. auto industry experienced the weakest sales in 27 years. Meanwhile, Japan's biggest retailer, Seven and I Holdings fell over five percent after it said Japan's anti-monopoly watchdog was investigating whether its Seven-Eleven stores restricted franchise holders of marking down certain items. And China said it may ask the WTO to investigate India's announcement it would impose safeguard duties on Chinese aluminium and possibly other goods after becoming concerned about the sharp rise in imports from China. Rio Tinto, which last week sold a $19.5 billion stake to Chinese state-run Chinalco, will postpone annual iron ore price negotiations with Chinese steel mills to monitor the market situation. Chinalco's investment, which needs approval from Rio shareholders, is likely to affect the negotiations between the mills and two other mining giants Vale and BHP Billiton. Stefanie McIntyre, Reuters

Asia markets fall sharply

Tue, 19 Aug 2008 12:33:40 -0400

Asia stocks fell sharply on Tuesday. Export shares such as Canon were among the biggest losers on worries about the state of U.S. economy. Japan's Nikkei tapped a one month low as the nation's central bank kept interest rate unchanged at its latest meeting. The bank made mention of weakness in the world's second largest economy. But it stuck to the view that the economy would eventually return to moderate growth. Hong Kong and China markets were also weak. Investors in China shares are worried about the outlook for China's economy after the Olympics are over. Stocks traded in Shanghai fell to a 20-month low earlier in the week -- hit by fears that slowing economic growth will stifle the expansion of corporate profits. Export orders from China are likely to fall severely if the the U.S. and European economies continue to slump. Hotels and other venues have largely failed to make big money out of tourists during the games. With many foreigners staying away due too tight visa restrictions and security worries. But some economists say robust domestic demand will keep the Chinese economy afloat after the tourists and athletes have gone home. Tara Joseph-Hui Reuters, Beijing.

Asia stocks update

Tue, 11 Dec 2007 12:26:21 -0500

A confidence boosting cash injection into troubled banks soothes investors MOREINFO: Expectations the U.S. Federal Reserve will cut rates this week also boosts confidence. SCRIPT: Asia stocks firmed on Tuesday with investors soothed by news of cash injections into banks hit by the unfolding subprime crisis. Investors also widely expect the U.S. Federal Reserve will cut interest rates by a quarter of a percent later in the day. Japan's benchmark Nikkei rose 0.8 percent (16,045) staying above the 16-thousand mark. Banks such as Hong Kong heavyweight HSBC were among the top regional performers. Exporters like Sony also traded higher as the dollar gained against the yen on recent signs the U.S. economy may avoid recession. Mainland China stocks were among the weakest. China reported consumer prices tapped 11-year highs in November. The data also showed troubling signs that price rises were spreading beyond food into the broader economy. Analysts expect markets to react to the U.S. Federal Reserves rate decision on Wednesday. Good news could help boost Asia stocks back toward record highs. Asia stocks excluding Japan have rallied nearly 39 percent so far this year China has been a top performer. Tara Joseph-Hui reporting for Reuters.

Bush on America's economy

Sat, 15 Mar 2008 12:14:23 -0400

On a drive to bolster faith in the U.S. economy amid fears of a recession, U.S. President Bush said on Friday the economy would regain its strength despite the hard times. SOUNDBITE: U.S. President George W. Bush saying (English): "I'm coming to you as an optimistic fellow. I've seen what happens when America deals with difficulty. I believe that we're a resilient economy." The president's remarks to the Economic Club of New York, came on the same day JPMorgan Chase and the Federal Reserve Bank of New York agreed to provide emergency financing to Bear Stearns after the investment bank said its cash position had deteriorated sharply. Despite a slew of bad news on the housing front and on the jobs front, the president argued that the U.S. economy is fundamentally sound and that a followup to a recent federal stimulus package is not needed. SOUNDBITE: U.S. President George W. Bush saying (English): "The temptation in Washington is to say that anything short of a massive government intervention in the housing market amounts to inaction. I strongly disagree with that sentiment. I believe there ought to be action. But I'm deeply concerned about law and regulation that will make it harder for the markets to recover." The President praised the work of the Federal Reserve and urged Congress to extend tax cuts that are set to expire. While President Bush refused to say the economy is in recession, many economists disagree pointing to the declining housing and stock markets, the skyrocketing price of oil and a slowdown in consumer spending. Jon Decker, Reuters. COMPANIES MENTIONED: SYMBOLS:

Asia stocks gain

Fri, 30 May 2008 08:49:20 -0400

Asia stocks ended the week on a strong note with major exporters such as Sony up on hopes the U.S. economy may be improving. Japan's Nikkei rose 1.5 percent (14,339) marking its highest close in four months. Honda Motor and other Japanese carmakers also gained with the yen weakening to a near three month low against the U.S. dollar. But Japanese data on Friday painted a bleaker picture for the world's second largest economy. Unemployment in Japan hit its highest level in seven months. Household spending also fell last month. Inflation slowed to 0.9 percent in April, but economists expect consumer prices to bounce higher on soaring food and oil prices. Despite signs of slowing Asian economies, the region's art market is alive and well. Auction house Christie's said it sold 310 million dollars worth of Asian art at its Hong Kong spring sales this week. The sale cemented Asia's reputation as a thriving art market. Tara Joseph-Hui reporting for Reuters.

Asian Shares Swing

Wed, 15 Oct 2008 09:20:13 -0400

Asia stocks swung on Wednesday as fears over a global recession crept back into investors minds. A U.S. central bank official said the U.S. economy looked to be in recession. The head of the Bank of Japan said global financial markets looked very strained. Large exporters such as Honda Motors fell sharply. Rival Mazda's stock also fell after a report that it has scrapped plans to build a second factory in the U.S. The Nikkei reversed steep falls and ended 1.1 percent higher. China stocks were also largely weaker on worries about slowing global growth. A senior government economist warned that China must concentrate all its efforts to safeguard strong growth because momentum was slowing sharply even before the financial crisis. Property and auto markets have slowed sharply in China, a further sign that Asia is not immune from a slowing world economy. Anthony Trotter reporting for Reuters.

Asia stocks slip

Fri, 29 Feb 2008 12:14:42 -0500

Asia stocks sank on Friday with growing U.S. recession worries coming back to haunt investors. Tokyo's 's Nikkei fell 2.3 percent (13,603), taking back some precious gains made over the past few weeks. Fresh Japanese inflation data also matched a decade-high, illustrating the problem the central bank faces in juggling rising prices with a faltering economy. Financial shares such as Nomura were among the stocks that were badly bruised. Exporters such as Sony also fell sharply. Commodities were on fire throughout the session. Gold surged to a new high above 973-dollars an ounce on the inflation woes. Crude oil hit 103 dollars for the first time in history fuelled by a weak dollar. Investors will continue to keep a close eye on the outlook for the U.S. economy. The American market is a major earning point for Asian exporters. Tara Joseph-Hui reporting for Reuters. COMPANIES MENTIONED: SYMBOLS: