Asian markets fell sharply on Monday. European loses.

[tekisui]

SHANGHAI, Jan. 28--Asian markets fell sharply on Monday, reflecting a deepening worry about exporters dependent on the health of the U.S. economy, and Europe indexes were trading lower as well.

Investors were pessimistic ahead of a slew of economic data announcements expected in the United States this week: new home sales, GDP numbers, the latest reading on unemployment and, perhaps most importantly, an announcement by the Federal Reserve on whether it would continue to cut interest rates or not.

A U.S. government report, due out Jan. 30, will likely show that growth is slowing, according to economists surveyed by Bloomberg News. The median estimate was a 1.2 annual rate from October to December, a quarter of the previous three months' pace.

Later that day, the Federal Reserve will release its latest policy statement on interest rates. The bank cut rates by three-quarters of a percentage point last week after global stocks began to plummet. Investors are expecting a further reduction this week.

On Friday, a report on unemployment will gauge how slowing growth is affecting U.S. labor markets.

In Japan, where the benchmark Nikkei fell nearly 4 percent, much of the selling was of shares in steel makers, machinery producers and exporters. Hitachi Construction plunged 14 percent. Video game console maker Nintendo, which depends heavily on the U.S. market, was also hit hard, falling 9.7 percent. Sony Corp. was down 4.5 percent.

In South Korea, where the benchmark Kospi fell 3.9 percent, shipbuilders took a hard hit, as did banks and construction firms. The country's largest corporation, Samsung Electronics Co., dropped 3.9 percent while Hyundai Heavy Industries Inc. plunged 5.3 percent.

The Shanghai Composite Index fell 7.2 percent over worries about Chinese exporters dependent on U.S. consumer spending. There also has been concern that earnings may be hurt by energy shortfalls due to heavy snowstorms throughout the country. The government has rationed electricity use in some factories and has ordered coal companies to stop exports for at least two months.

Among the only stocks that did well Monday were those of coal companies, such as China Shenhua Energy, China Coal and Yanzhou Coal, which were up 3-4 percent on the Hong Kong Stock Exchange.

"This year will see a rise of economic uncertainties and market volatility," said Shen Minggao, an analyst for Citigroup in Beijing. "The Chinese government needs to loosen its tight monetary policy, but there has been no such action yet."

Major European indexes had dropped by between 1.5 percent and 2 percent by late morning, with banks and financial firms hard hit by concerns about possible losses related to subprime mortgages and other risky debt.

link: http://www.washingtonpost.com/wp-dyn/content/article/2008/01/28/AR2008012800718.html

[Wednesdays]

1. London exchange down 2% so far...

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