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Asia stocks slump on rising risk aversion; Nikkei sheds 3.84%

Published 06/07/2010, 04:14 AM
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Investing.com – Asian stocks slumped on Monday, in the wake of disappointing U.S. jobs data and as growing fears that Europe's debt crisis will spread sapped investors' risk appetite.

Hong Kong's Hang Seng Index was down 2.36%; South Korea's Kospi Composite slipped 1.57%; the Shanghai Composite Index dropped 1.64%; and Japan’s Nikkei 225 Index slid 3.84%.

Australia's S&P/ASX 200 Index sank 2.78%, despite an upbeat report on job advertisements. Earlier in the day, a survey conducted by ANZ Bank showed that Australian job advertisements in newspapers and on the Internet climbed into positive territory in May.

Miners were among the worst performers, with BHP Billiton shedding 3.5% and Rio Tinto dropping 3% in Sydney.

Last week, Hungarian officials warned that their country could face a Greek-style debt crisis and that default was a real possibility, sparking fears that Europe's sovereign debt crisis could widen.

The outlook for U.S. equity markets, meanwhile, was also dim: Dow Jones Industrial Average futures indicated a drop of 0.21%, S&P 500 futures pointed to a fall of 0.3% and Nasdaq 100 futures indicated a decline of 0.28%.
   
Later in the day, the Sentix research group was due to publish a report on euro zone investor confidence. Germany's central bank was also scheduled to publish monthly data on factory orders, a leading indicator of production.

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