Tuesday, September 6, 2011

ASIA-Shares set to fall as Europe woes weigh

WELLINGTON: Asian stocks look set to weaken on Tuesday after European equities slumped on renewed worries about the health of euro zone banks and the weak economic outlook.

Wall Street was closed for a public holiday, leaving the trend to be set by European stocks, which ended down 4.1 percent, with the banking sector shedding nearly 6 percent to a 29-month low.

British stocks were also thumped, closing 3.6 percent lower at a two-week closing low. Weak Chinese service sector data only added to the downbeat mood following the weak U.S. jobs data on Friday.

Worries about public deficits in Greece and Italy triggered fresh selling in the euro for safe-havens like the greenback and the Swiss franc. A regional election rout for Germany's ruling party added to concerns about the euro zone debt crisis.

The MSCI all country world equity index was down 2.0 percent on the day.

Japanese stocks are likely to extend Monday's decline amid growing concerns about the global outlook. Nikkei futures traded in Osaka are down 0.9 percent to be 94 points below the Nikkei's closing level.

Australian stocks are also seen opening lower with share price index futures at a 52 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

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