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Asia stocks fall amid global recovery concerns; Nikkei sheds 0.7%

Published 06/13/2011, 02:47 AM
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Investing.com – Asian stock markets declined on Monday, as mounting concerns over the global economic recovery weighed on market sentiment, while shares in Toyota led losses in Tokyo after forecasting a decline in profit.

During late Asian trade, Hong Kong's Hang Seng Index slumped 0.3%, South Korea's Kospi Composite dipped 0.15%, while Japan’s Nikkei 225 Index fell 0.7%.

Earlier in the day, Japan’s Cabinet Office said that core machinery orders unexpectedly declined in April, falling by 3.3%, confounding expectations for a 2% gain and adding to investors' nervousness about the already struggling economy.

Meanwhile, the world’s largest automaker Toyota saw shares tumble 2.5% after forecasting full-year earnings will fall by 31% from a year earlier, citing production cuts because of quake damage and a stronger yen.

The downbeat forecast weighed on other shares in the sector, with Honda dropping 2.4% while shares in Nissan slipped 1.15%.

Tire makers were also dragged down by the Toyota news with Bridgestone and Sumitomo Rubber Industries down 2.55% and 1.95% respectively.

Oil producers retreated as crude oil prices dipped below USD99 a barrel. Inpex saw shares slump 1.7%, while shares in the nation’s second largest oil driller Japan Petroleum Exploration Company declined 1.65%.

In Hong Kong, shares in property developers were broadly lower after Hong Kong’s government increased the supply of land available to build homes and tightened mortgage restrictions.

Shares in Hong Kong’s third largest property developer Hang Lung Properties fell 3.6%, rivals Sino Land Company saw shares drop 2.1%, while shares in property investment firm New World Development saw shares slide 1.6%.

The outlook for European stock markets was mixed. The EURO STOXX 50 futures pointed to a rise of 0.2%, France’s CAC 40 futures shed 0.1%, the FTSE 100 futures eased up 0.1%, while Germany's DAX futures rose 0.6%. 

Later in the day, European Central Bank President Jean-Claude Trichet was to speak at an event in London, while markets in France and Germany were to remain closed for a national holiday.

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