Sept. 5 - Asian stocks fall Monday as fears of renewed recession in the United States and sustained worries about the euro zone debt crisis prompt investors to sell riskier assets. Toshi Maeda reports.
Asian stocks declined Monday (September 5) as fears of a renewed U.S. recession prompted investors to sell riskier assets. Japan's Nikkei lost 2 percent and Asian Pacific shares' index outside Japan fell 3 percent following Friday's U.S. employment data, which showed the world's biggest economy failed to create any jobs last month for the first time in nearly a year. Among the hardest hit sectors were energy and materials, both sensitive to expectations of industrial demand, as well as technology, affected by Western demand for Asian electronics, which declined as much as 4.5 percent. Investors are looking ahead to a speech to U.S. Congress by President Barack Obama on Thursday (September 8) for details on how he plans to boost the economy. But ING Financial Markets' economist Tim Condon says investors should not expect much economic policy progress from the United States. (SOUNDBITE) (English) ING FINANCIAL MARKETS MANAGING DIRECTOR AND HEAD OF RESEARCH, ASIA, TIM CONDON, SAYING: ''I think investors should be prepared for very little other than politics to come out of Washington at this point , apart from hopefully the Fed. But the politicians, the elected politicians I think are in campaign mode and I expect what we'll get out of President Obama's speech this week is probably very little or something that is absolutely unacceptable to the Republican Party'' In currency markets, the euro hit its lowest level in three weeks against the dollar amid sustained worries about the euro zone debt crisis. Toshi Maeda, Reuters.