MH: Asian stocks track Wall Street lower; Europe gains
HONG KONG -- Asian stocks retreated Tuesday, following losses on Wall Street amid rising concerns the markets have gotten ahead of economic realities. European markets gained modestly.
Major Asian markets dropped by around 2 percent or more, with shares in resource companies hit after a steep fall in commodity prices overnight. Oil recovered only modestly to trade near $79 a barrel, while the dollar was slightly weaker against the yen and euro following a sharp rise.
Investors unloaded shares in Asia after U.S. markets got pounded as the dollar strengthened and anxiety grew about the market overheating given the troubles still facing major Western economies and a number of financial companies.
Some analysts said the markets, up massively since March, could get more choppy even if they continued to advance.
"The market has gotten high enough, so there's some profit taking right now," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "The summer rally seems to be over, and I think we're facing a cold winter."
As trading opened in Europe, markets in Britain, Germany and France were higher by about 0.2 percent each as BP PLC, the continent's second-largest oil company, said third-quarter profit fell less than expected - to $5.3 billion from $8 billion a year earlier.
In Japan, the benchmark Nikkei 225 stock index lost 1.5 percent, or 150.16 points, to 10,212.46 points. Hong Kong's market, which was closed Monday, dropped 420.14, or 1.9 percent, to 22,169.59.
China's Shanghai market led Asia's declines, tumbling 88.11, or 2.8 percent, to 3,021.46. Australia's market lost 1.6 percent and India's Sensex was 2 percent lower.
South Korea's Kospi shed 0.5 percent to 1,649.53 a day after new figures showed the country's economy, Asia's fourth largest, expanded at its quickest pace in seven years in the last quarter.
In the U.S. overnight, the the Dow fell 104.22, or 1.1 percent, to 9,867.96.
The broader Standard & Poor's 500 index fell 12.65, or 1.2 percent, to 1,066.95. The index, which is the basis for many mutual funds, is down 2.8 percent from its recent peak a week ago.
Wall Street futures were down. Dow futures fell 3 points to 9,826.
Oil prices lingered below $79 a barrel Tuesday in Asia after three days of losses as investors eyed a volatile U.S. dollar. Benchmark crude for December delivery rose 4 cents to $78.72; the contract fell $1.82 overnight.
In currencies, the dollar weakened after rising overnight, trading at 91.89 yen from 92.21 yen. The euro gained to $1.4880 from $1.4861.
