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Asia stocks down after weak U.S home sales data; Nikkei drops 1.87%

Published 06/23/2010, 03:57 AM
FCHI
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DE40
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STOXX50
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JP225
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HK50
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RIO
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BHPB
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CL
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Investing.com – Asian stocks were down on Wednesday, following on from losses in the U.S. markets after an unexpected drop in U.S. existing home sales cast doubt over the strength of the global economic recovery.
 
Hong Kong's Hang Seng Index was down 0.40%; South Korea's Kospi Composite slid 0.33%; and Japan’s Nikkei 225 Index fell 1.87%.

Energy stocks were down on the back of weaker crude oil prices, with miners also down. BHP Billiton fell 1.4% and Rio Tinto was down 1.7%.

Investor sentiment was undermined after the U.S. National Association of Realtors said on Tuesday, that existing home sales dropped to 5.66 million units in May, down from 5.79 million in April. The drop in sales came even as mortgage rates were at an all time low.

The outlook for European equity markets, meanwhile, was dim: EURO STOXX 50 futures indicated a fall of 1.27%, France’s CAC 40 futures pointed to a decrease of 1.20% and Germany's DAX futures indicated a fall of 0.82%.

Later in the day, the European Union was to publish purchasing managers' indexes for its manufacturing and services sectors.

The U.S., meanwhile, was to release a report on new home sales, while the U.S. Federal Reserve was to announce its benchmark interest rate, the Federal Funds Rate.

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