Asia stocks drop on contracting Japanese economy; Nikkei down 0.79%
Published Nov 11, 2012 10:49PM ET
During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.06%, Australia's S&P/ASX200 was down 0.15%, while Japan’s Nikkei 225 Index was down 0.79%.
Sluggish demand for Japanese exports abroad took its toll on the Japanese economy in the third quarter, though hopes for improvement cushioned the blow.
Data revealed that Chinese industrial production rose by 9.6% in October, outpacing expectations for a 9.4% increase an up above a 9.2% rise in September.
News that Chinese exports grew by 11.6% on year in October also boosted morale.
Also dampening spirits were growing fiscal concerns in the U.S.
At the end of this year, tax breaks are set to expire in the U.S. at the same time cuts to government spending are scheduled to kick in, a combination known as a fiscal cliff that could send the country into a recession next year if left unchecked by Congress.
Fears Democrats and Republicans will engage in partisan bickering and fail to compromise sent stocks dipping.
In Hong Kong, top gainers included China Resources Power, up 2.26%, CITIC Pacific, up 2.13%, and CHALCO, up 0.91%.
In Australia, top decliners included ALS Ltd., down 10.07%, Lynas Corp., down 8.07%, and QBE Insurance Group, down 8.00%.
European stock futures indicated a mixed opening.
France's CAC 40 futures pointed to a loss of 0.62%, while Germany's DAX 30 futures pointed to a gain of 0.14%. Meanwhile in the U.K., FTSE 100 futures were down 0.17%.
Dow Jones Industrial Average futures were up 0.05%, while the S&P 500 futures were up 0.01%.
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Written By: Investing.com
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