BANGKOK (AP) — Asian stock markets were mostly lower Wednesday as a surprise drop in U.S. consumer confidence sowed new doubts about the pace of economic recovery.
News that Japan’s industrial production rose for a sixth month in August failed to stop the Nikkei from slipping into the red while China bucked the regional trend on the last day of trading before a weeklong holiday. Oil prices crept higher despite a rise in U.S. crude inventories.
Wall Street fell Tuesday after the Conference Board said its consumer confidence index fell in September. Economists had been expecting a reading of 57; instead it came in at 53.1.
The private research group said consumers are still worried about losing their jobs. Many analysts warn a turnaround in the economy won’t hold unless consumer spending picks up and employers add jobs.
Asian stocks have rallied since March on optimism about growth prospects as the global recession faded. But some analysts warn markets have rallied too far and too fast.
“China has had too rapid a rise. I’m not sure it’s still grounded in profits. The Japanese market is difficult to say because there is so much uncertainty on policy,” said Katen Patel, who helps manage $500 million of assets for Greater Pacific Capital.
In Tokyo, the Nikkei 225 stock average was down 9.2 points, or 0.1 percent, at 10,091.00 and Hong Kong’s Hang Seng shed 153.93, or 0.7 percent, to 20,859.24. South Korea’s Kospi lost 0.9 percent to 1,674.10.
China’s Shanghai index rose 1.4 percent to 2,793.86. China’s financial markets close Thursday for the weeklong National Day holiday and reopen October 9.
Elsewhere, Australia’s market fell 0.4 percent, Singapore was down 0.5 percent and Taiwan’s index gained 1.1 percent.
On Wall Street, the Dow Jones industrials fell 47.16, or 0.5 percent, to 9,742.20, chipping away part of Monday’s 124-point gain. The S&P 500 index slipped 2.38, or 0.2 percent, to 1,060.60, and the Nasdaq composite index fell 6.70, or 0.3 percent, to 2,124.04.
Oil prices rose above $67 a barrel in Asia despite an increase in U.S. crude inventories for a third week, indicating weak consumer demand. Benchmark crude for November deliver was up 51 cents at $67.22. The contract fell 13 cents to settle at $66.71 on Tuesday.
In currencies, the dollar fell to 89.62 yen from 90.12 yen. The euro rose to $1.4627 from $1.4581.
