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Asia stocks tumble on Spanish debt fears; Nikkei down 1.01%

Published 04/10/2012, 10:26 PM
Updated 04/10/2012, 10:29 PM
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Investing.com - Asian stocks tumbled on Wednesday, trailing their U.S. and European counterparts on fears the debt crisis is brewing anew in Europe, while growth may be tempering in the U.S. and China.

During Asian trading on Wednesday, Hong Kong's Hang Seng Index was down 1.22%, Australia's S&P/ASX200 was down 0.62%, while Japan’s Nikkei 225 Index was down 1.01%.

In Europe, rising yields in Spanish government bond auctions are fueling already growing fears that Spain will be the next eurozone country in need of a bailout.

Investor sentiment is falling in the entire eurozone as well.

Market research group Sentix said its index of investor confidence declined by 6.5 points to -14.7 in April from March’s reading of -8.2.

In the U.S., rising crude stockpiles suggest consumers are balking at paying more at the pump, forgoing driving.

Risking stockpiles also suggest the U.S. economy might not be as robust as once thought and in need of less fuel to grow.

Meanwhile, the U.S. National Federation of Independent Businesses said its index of small-business optimism came in at 92.5 in March, lower than expectations for a 95.0 reading, mainly due to concerns that high gasoline prices will crimp into business.

The disappointing U.S. figures came in wake of a dismal March jobs report that showed the economy picked up 120,000 nonfarm payrolls that month, far below expectations.

Clouds were building over China as well.

The Chinese trade balance jumped to a surplus of USD5.3 billion in March from a deficit of USD31.5 in the previous month, which would suggest waning internal demand, another sign of a cooling global economy.

Investors spent the day selling stocks in a risk-off trading session and stocking up on dollars in the process.

In Hong Kong, the top decliners included Swire Pacific A, down 3.77%,  Sino Land, down 3.41%, and Cathay Pacific Air, down 2.83%.

Top Australian decliners included Art Energy, down 5.26%, Bathurst Resources, down 4.68%, and  Energy World Corporation, down 4.41%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.17%, while Germany's DAX 30 futures signaled a gain of 0.14%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.18%.

Dow Jones Industrial Average futures were up 0.25% while the S&P 500 futures were also up 0.29%.

Later Wednesday, Australia is to publish unemployment data, while Japan will release data on the country's money supply.

The Bank of Japan will release its monthly report, which contains the statistical data that the central bank's policy board members evaluated when making their latest decision on interest rates.

In the U.S., the government will release data on import prices, crude stockpiles as well as the federal budget balance.

The Federal Reserve will also to publish its Beige Book.






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