By Lynn Thomasson - Jan 5, 2012 7:58 AM GMT+0700
Asian stocks (MXAP) and the Australian dollar weakened after Italy’s biggest bank said it needs to raise more capital, spurring concern that the European debt crisis is worsening.
The MSCI Asia Pacific Index (MXAP) fell 0.3 percent as of 9:56 a.m. in Tokyo after climbing 2.4 percent in the past two days. Standard & Poor’s 500 Index futures were little changed. The so- called Aussie retreated 0.4 percent to $1.0332. The euro was little changed at $1.2933 after yesterday’s 0.8 percent decline. Gold and oil were also little changed.
“Problems sparked by the European debt crisis are reigniting and people in the market have reaffirmed that the situation has not changed,” said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “That’s weakening the euro and hurting exporters with a heavy reliance on Europe.”
European shares snapped a four-day streak of gains yesterday as UniCredit SpA’s plan to sell shares fueled concern that banks need to raise capital to weather the debt crisis. Australia’s services industry shrank for a third straight month as consumer spending weakened, according to a private survey. Data later today may show that the Institute for Supply Management’s non-manufacturing index expanded in December at the fastest pace in three months, based on a Bloomberg survey of economist estimates.
To contact the reporter on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
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