By Kyung Bok Cho and Shani Raja
Sept. 23 (Bloomberg) -- Asian stocks fell after oil jumped and on concern the U.S. government's plan to buy financial companies' bad mortgage assets will fail to prevent a recession.
Samsung Electronics Co., South Korea's biggest exporter, lost 1.8 percent after oil's surge raised speculation inflation will curb demand for its products. Commonwealth Bank of Australia dropped 2.6 percent after the Standard & Poor's 500 Index erased almost half of its rally over the previous two days.
``The bailout gave the U.S. financial system a cardiac jolt that will prevent it from collapsing, but the economy is still in intensive care,'' said Prasad Patkar, who helps manage the equivalent of $1.8 billion at Platypus Asset Management in Sydney.
The MSCI Asia Pacific excluding Japan Index slid 0.7 percent to 357.64 as of 10:25 a.m. in Sydney. South Korean and Australian shares fell as financial stocks were the biggest contributor to today's decline. Markets in Japan are shut for a holiday.
Asia's benchmark gauge advanced 8.3 percent in the previous two days after the U.S.'s $700 billion rescue plan for banks and tighter regulating of short selling by the U.S., U.K., Australia and Taiwan eased concern more companies will fail.
U.S. stocks tumbled yesterday, with the S&P 500 losing 3.8 percent, on concern that the U.S. bailout plan won't benefit regional banks. S&P 500 Index futures gained 0.1 percent in after-hours trading.
To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.netShani Raja in Sydney at sraja4@bloomberg.net
Posts
No comments:
Post a Comment