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Asian stocks down as SKorea growth slows sharply (AP)



BANGKOK – Asian stock markets fell Wednesday as slowing South Korean growth underscored weakness in overseas demand and investors fretted the U.S. Federal Reserve’s expected stimulus measures may not be enough to boost the economy.

Japan’s benchmark Nikkei 225 stock index trimmed gains to be up just 6.68 points, or 0.1 percent, at 9,384.06. Exporters got a modest lift as the yen reversed some of its recent strength against the U.S. dollar.

Investors were reluctant to trade heavily ahead of the release of corporate results from major Japanese companies including Sony Corp. and Honda Motor Co. later this week.

South Korea’s Kospi was down 0.6 percent at 1,908.84 after government figures showed the country’s economic growth slowed sharply in the third quarter on weaker exports and manufacturing. Asia’s fourth-largest economy expanded 0.7 percent in the July-September period after 1.4 percent growth in the previous quarter.

Hong Kong’s Hang Seng index fell 1.6 percent to 23,224.15 and mainland China’s benchmark dropped 0.5 percent to 3,027.34. Australia’s S&P/ASX 200 shed 0.9 percent to 4,648.10.

Benchmarks in India, Singapore and Taiwan also fell.

On Wall Street, the Dow Jones industrial average closed up 5.41 points, or 0.1 percent, at 11,169.46. The Standard & Poor’s 500 index rose 0.02 to 1,185.64 while the technology-focused Nasdaq composite index rose 6.44, or 0.3 percent, to 2,497.29.

Investors have bet that the U.S central bank will enact a bond-buying program in early November in a bid to support the world’s biggest economy. Buying bonds would drive interest rates and yields even lower, which makes stocks a more attractive investment.

Traders have speculated the size of the Fed’s bond purchase will be around $500 billion. But investors were worrying it may be smaller than previously expected following a speech Monday by William Dudley, the president of the Federal Reserve Bank of New York.

Dudley said further Fed action was “likely to be warranted” unless the economic outlook improved. Still, he added that the Fed “cannot wave a magic wand and make the problems remaining from the preceding period of excess vanish immediately.”

In currencies, the dollar rose to 81.75 yen from 81.41 yen late Tuesday in New York. The euro fell to $1.3808 from $1.3856.

Benchmark crude for November delivery was down 40 cents to $82.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 3 cents to settle at $82.55 on Tuesday.

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Asian stock markets mixed as China growth slows (AP)



BANGKOK – Asian stocks were mixed Thursday as China reported slower growth, suggesting a waning contribution by the world’s No. 2 economy to the global recovery.

Oil prices fell to near $82 a barrel as a stronger U.S. currency weighed on crude by making dollar-based commodities more expensive for investors with other currencies.

Japan’s benchmark Nikkei 225 stock index couldn’t hold onto its morning gains, slipping 0.2 percent, or 18.76 points, to 9,362.84.

Hong Kong’s Hang Seng was down 0.1 percent to 23,539.79 and the Shanghai Composite Index dropped 0.9 percent to 2,977.07. Markets in Singapore and Malaysia were lower as well.

Among gainers, South Korea’s Kospi advanced 0.1 percent to 1,873.09 and Australia’s S&P/ASX 200 added 0.1 percent to 4,629.50. Markets in India, Taiwan and Indonesia also posted gains.

Tey Tze Ming, a trader with Saxo Capital Markets in Singapore, said markets were likely to be volatile in the medium term amid doubts about the outlook for economic growth.

“The rally of the last five or six months was kind of a nice, straight line. But now, given there is so much uncertainty, we can expect more swings to come — like in the last few days,” Ming said.

China said Thursday its rapid economic expansion slowed in the July-September quarter as Beijing cooled a credit boom and tried to steer growth to a more sustainable level.

The world’s second-largest economy grew 9.6 percent over a year earlier. That was down from the previous quarter’s 10.3 percent but by far the highest of any major economy.

Still, Ming said he thought a 9 percent growth figure was “too low for China” because growth at that rate could lead to higher unemployment — and greater social unrest.

China’s slowdown was driven in part by a government clampdown on bank lending aimed at cooling surging housing costs and stock speculation. Before a surprise interest rate hike earlier this week, regulators already had tightened controls on mortgage lending and other credit.

Japan’s Nikkei initially went up after U.S. Treasury Secretary Timothy Geithner was quoted by the Wall Street Journal as saying major currencies were in alignment, suggesting the dollar shouldn’t weaken further against the yen. The comments pushed the dollar as high as 81.84 yen in Tokyo from 81.13 yen in New York late Wednesday.

In New York Wednesday, the Dow Jones industrial average rallied 129.35 points, or 1.2 percent, to 11,107.97, lifted by a batch of strong earnings results from companies like Delta Air Lines Inc. and Boeing Co.

In currencies, the euro fell to $1.3908 from $1.3951 in New York late Wednesday. The dollar gave up some of its gains versus the yen to trade at 81.18 yen.

Benchmark oil for December delivery was down 60 cents to $81.94 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.38 to settle at $82.54 on Wednesday.

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Stocks set to edge lower as Japanese growth slows (AP)



NEW YORK – Stock futures fell after Japan became the latest country to report slowing growth, adding to concerns about the pace of a global economic recovery.

Japan reported its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as quickly as earlier in the year.

There are a few economic reports due out this week that should provide more direction on the pace of recovery. The Federal Reserve Bank of New York is expected to say Monday that the manufacturing activity in the state rebounded this month after the pace of growth slowed sharply in July.

Economists polled by Thomson Reuters predict the Empire State Manufacturing index rose to 8 from 5.08 in July. Stocks were hurt last month after a sharp drop in the index.

Investors will also get reports on housing starts, inflation at the consumer level, industrial production and weekly claims for unemployment benefits later this week. A big jump in unemployment claims last week added to stock losses.

The Dow Jones industrial average fell nearly 400 points over the past four trading days after the Federal Reserve took a more cautious tone about the pace of recovery and said it would start buying Treasury bonds to try and stimulate growth. Major retailers like J.C. Penney Co. also warned that profits the rest of the year would not be as big as previously estimated because shoppers are cutting back on spending.

Home-improvement retailer Lowe’s Cos. said Monday its quarterly profit and revenue rose, though both measures fell short of forecasts.

Investors continued to snap up Treasurys Monday, driving interest rates lower. The drop came because of continued concerns that the global economy will slow and mostly strong corporate earnings reported in the second quarter will not be able to hold up.

Ahead of the opening bell, Dow Jones industrial average futures fell 41, or 0.4 percent, to 10,225. Standard & Poor’s 500 index futures fell 4.80, or 0.5 percent, to 1,071.30, while Nasdaq 100 index futures fell 3.25, or 0.2 percent, to 1,812.00.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.61 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans.

The yield on the 10-year note is near the level last hit in March 2009 when stocks fell to a 12-year low.

Overseas, Japan’s Nikkei stock average fell 0.6 percent. Britain’s FTSE 100 fell 0.4, Germany’s DAX index dropped 0.4 percent, and France’s CAC-40 fell 1 percent.

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Asian markets mixed as Japan’s growth slows (AP)



BANGKOK – Asian stocks markets were mixed Monday as a sharp slowdown in Japan’s growth added to evidence the global economy is losing momentum.

Recent figures on the U.S. and Chinese economies have also suggested global growth is facing headwinds as the initial burst of expansion in the wake of the global recession cools.

Japan’s Nikkei 225 stock average was down 78.64 points, or 0.9 percent, at 9,174.82 amid strength in the yen and after government figures showed the economy grew an annualized 0.4 percent in the second quarter after a 5 percent expansion in the first three months of the year.

Consumer spending, which accounts for about 60 percent of Japan’s gross domestic product, was flat from the previous quarter. Analysts said the outlook for the third quarter is uncertain as a cooling global economy is dampening production and exports — a mainstay of the Japanese economy.

Hong Kong’s Hang Seng was off less than 0.1 percent at 21,066.40 and South Korea’s Kospi declined 0.9 percent to 1,730.90. Markets in Singapore, Indonesia, Australia and Thailand also fell.

Among the gainers was China’s Shanghai Composite Index, up 1.3 percent at 2,640.84, and India’s Sensex, which added 0.1 percent to 18,183.70. Markets in Taiwan, Malaysia and the Philippines gained as well.

U.S. stocks extended their losing streak to four days Friday after a mixed batch of readings on consumers further muddled investors’ sense of the economy.

One of the biggest obstacles to a strong recovery in the world’s biggest economy is weak consumer spending. Friday’s reports about consumers’ attitudes and spending didn’t point to a shopping rebound anytime soon.

The Dow fell 16.80, or 0.2 percent, to 10,303.15. The Standard & Poor’s 500 index fell 4.36, or 0.4 percent, to 1,079.25. The Nasdaq composite index fell 16.79, or 0.8 percent, to 2,173.48.

In currencies, the dollar fell to 85.81 yen from 86.18 yen. The euro rose to $1.2791 from $1.2755.

Benchmark crude for September delivery was up 30 cents at $75.69 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 35 cents on Friday to settle at $75.39 a barrel, its lowest level in a month.

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Stocks rise modestly as economic growth slows (AP)



NEW YORK – News that economic growth slowed during the spring gave the stock market a fitting end to a choppy July — yet another back-and-forth day.

The Dow Jones industrial average, down almost 120 points in the first minutes of trading, recovered and seesawed throughout the session. The Dow was up 17 in late afternoon. The other major indexes also rose modestly. Traders opted for the safety of Treasury bonds, and that sent interest rates lower.

But stocks were on track for their strongest month in a year. The Dow was up 7.1 percent going into Friday’s trading.

The Commerce Department said the gross domestic product, the broadest measure of the economy, grew at an annual pace of 2.4 percent from April to June. That’s less than the 2.5 percent economists polled by Thomson Reuters had forecast.

At first the report confirmed investors’ belief that the recovery is weakening as unemployment remains high and government stimulus programs end. Consumers cut back on their spending because of job worries and companies spent less to rebuild inventories.

But analysts said that as investors read deeper into the report, it didn’t look as bad as they initially thought. They found some good news in consumers’ savings rate.

“The consumer actually decided to save more,” Jason Pride, director of investment strategy at Glenmeade, an investment management company. “Consumers have done more to repair their balance sheets than thought.”

Pride said that means that those extra savings will eventually be spent, giving the economy a lift. Consumer spending accounts for the bulk of economic activity.

Business spending on equipment and software jumped in the second quarter by the biggest amount in 13 years. That was encouraging, analysts said, because it means companies are eventually going to start adding jobs.

“Companies are spending and eventually it will turn into employment,” said Ron Weiner, president and CEO at RDM Financial Group.

It wasn’t surprising that stocks gave up their gains and turned lower. Trading has been erratic as weak economic numbers have conflicted with companies’ generally good second-quarter earnings and forecasts for the rest of the year. Investors have been quick to cash in their gains because they don’t have a sense of where the market is headed.

In afternoon trading, the Dow Jones industrial average rose 17.48, or 0.2 percent, to 10,484.64. The Standard & Poor’s 500 index rose 3.34, or 0.3 percent, to 1,104.87, while the Nasdaq composite index rose 9.09, or 0.4 percent, to 2,260.78.

Rising stocks outpaced losers by about 2 to 1 on the New York Stock Exchange where volume came to 745 million shares.

Volume was extremely light even for a summer day. That continued a trend that has been seen for much of July. Analysts say many investors, uncertain about the where the market is heading, are staying on the sidelines or moving money into safer alternatives.

That strategy sent Treasurys higher Friday. The yield on the 10-year Treasury note, which moves opposite its prices, fell to 2.91 percent from 2.99 percent. Its yield is often used as a benchmark for interest rates on mortgages and other consumer loans. A yield below 3 percent suggests investors are worried about long-term growth and don’t fear inflation will be a problem anytime soon. Inflation is a threat to the long-term value of bonds.

Investors got some mildly good news from two other economic reports. The University of Michigan/Reuters consumer sentiment index for July rose slightly more than expected to 67.8 from a preliminary reading of 66.5. Economists expected it to rise to 67.

And the Chicago Purchasing Managers Index, which measures manufacturing activity in the Midwest, rose unexpectedly to 62.3 this month from 59.1 in June. Economists were expecting a drop to 56.5. The report is seen as an indicator of how the Institute for Supply Management’s nationwide index is likely to come in when it’s released on Monday.

Traders were also being cautious because they’re waiting for a series of key reports next week that will give a first look at how the economy is doing in the current quarter. The Institute for Supply Management releases its reports on the manufacturing and services sectors during July and the Labor Department issues its report on employment for this month.

Economists predict the two ISM reports will show manufacturing and the services industry expanded in July but at a slower pace than in June.

Meanwhile, the unemployment rate likely inched higher to 9.6 percent in July from 9.5 percent in June as the government laid off more temporary census workers. Private employers likely added 90,000 jobs during the month, slightly better than in June.

Overseas markets mostly fell Friday after reports that Spain’s credit rating is likely to be cut by Moody’s Investors Service. The potential downgrade comes as the country’s unemployment rate jumped to a 13-year high of 20.09 percent and the government continues to grapple with rising debt problems.

Spain’s IBEX 35 fell 1.2 percent. Britain’s FTSE 100 fell 1.1 percent, Germany’s DAX index rose 0.2 percent, and France’s CAC-40 fell 0.2 percent. Japan’s Nikkei stock average fell 1.6 percent.

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