Monday 5 September 2011

Asian stocks, euro fall on U.S. growth gloom

SINGAPORE: Asian stocks fell and the euro slipped to a three-week low against the dollar on Monday as fears of renewed recession in the United States and sustained worries about the euro zone debt crisis prompted investors to sell riskier assets.


European stocks were expected to drop too, with financial bookmakers calling the major indexes down more than 1 percent.


U.S. employment data on Friday showed the world's biggest economy failed to create any jobs last month for the first time in nearly a year.


"Even if you take out the effect from the Verizon strike, it is still a lousy number and people are concerned that growth is not there anymore," said Dominic Schnider, head of commodity research of UBS Wealth Management in Singapore.


Europe, meanwhile, faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure on governments to try more radical solutions.


"In this atmosphere, foreign investors are likely to remain risk-averse and inactive," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co in Tokyo.


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