Business: Asia Stocks Fall, Yen Gains on Greece

Asian shares fell for the third day the yen strengthened and concern for the Greek bond referendum on the risk of jumping the endanger the rescue plan. U.S. stock market index futures climbed and Treasuries declined before the Fed concludes a two-day policy meeting.

MSCI Asia Pacific Index sank 0.8 percent in Tokyo, at 15:50. Standard & Poor's 500 index futures added 0.8 percent after a 2.8 percent drop in U.S. stocks yesterday, and the gauge 10-year Treasury notes snapped a three-day benefits. MarkIT iTraxx Asia index of debt default risk goes to the three-week high. Rose 0.3 percent 78.12 yen per dollar. The euro halted a three-day fall. Copper rebounded from a two-day decline.

Emergency talks will take place on the eve of the 20th Group Summit in Cannes, France, where officials of the European Union is likely to Greek Prime Minister George Papandreou said there is no alternative to the bailout plan for budget cuts to convincingly last week. Fed is probably an engineering major in the third round of asset purchases, even if the decision is unlikely to be announced today, Bloomberg News surveyed economists said.

"After last week's announcements, I was feeling cautiously optimistic that Europe was finally on track to get anything done, but it is a setback for the whole process," Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd.. Bloomberg said in a television interview.

About two stocks fell for each one that has been acquired by the MSCI Asia Pacific Index. Japan's Nikkei 225 Stock Average dipped 2.2 percent, the Australian S & P / ASX 200 index lost 1.1 percent and South Korea's KOSPI index fell 0.6 percent.
Earnings

OneSteel Ltd (OST) tumbled 18 percent in Sydney, said the steel is likely to hurt profits and growth decline in iron ore prices in Australian dollars. Nomura Holdings Inc. sank 4.1 percent after Japan's largest brokerage said first-half loss. Toyota Motor Corp. and Honda Motor Co. slid at least 3.5 percent after automakers posted U.S. sales decline in October.

S & P 500 futures are signaling U.S. stocks back gauge can be a two-day, 5.2 percent decline. The Institute for Supply Management factory index fell to 50.8 in October from 51.6 in September. Displays the average forecast of 52 economists Bloomberg News survey.

Sixty-nine percent of the economists interviewed by Bloomberg said Chairman Ben S. Bernanke will start in the third round of quantitative easing, or QE3, with a 36 percent plurality in the first quarter of next year, predicting the move, according to poll of economists from 42 26 to 31 October The 10-year Treasury yield increased six basis points to 2.05 percent, after a three-day decline.

European Talks

The euro fell as much as 0.5 percent earlier rose 0.2 percent to $ 1.3726. German Chancellor Angela Merkel and French President Nicolas Sarkozy held emergency talks with the Greek and the joint statement yesterday called for measures to implement the package. Sarkozy told reporters that the plan is the "only way" to fix Greece.

Referendum in the Greek aid to prevent the next installment of funds by the IMF and the European Union, Dutch Finance Minister Jan Kees de Jager said. Japan's finance minister, said people in June Azumi is "baffled" the Greek decision to a referendum on its fiscal bailout.

MarkIT iTraxx Asia index of 40 investment-grade borrowers outside Japan climbed 15 basis points to 212.5 basis points, Royal Bank of Scotland Group Plc prices show. Index is poised near the highest since 11 October, after gaining 18.5 basis points yesterday according to CMA, which is owned by CME Group Inc. and produce prices quoted by dealers in privately negotiated market.
Credit Risk, Commodities

MarkIT iTraxx Australia index reached 20 basis points to 195 basis points, according to Australia & New Zealand Banking Group Ltd., while MarkIT iTraxx Japan index rose 13.5 basis points to 190, Deutsche Securities Inc. prices show.

Oil December delivery fell 0.2 percent to $ 92 a barrel on the New York Mercantile Exchange, adding three days to 1.9 per cent slump. Energy Department report today was forecast to show a 1 million barrels of crude oil reserves.

Copper three-month delivery added 2.5 percent to $ 7,924.75 per tonne London Metal Exchange. Futures fell 5.4 percent in the past two days. Nickel and aluminum climbed 1.9 percent from 1.5 percent.

Copper inventories monitored by the LME fall, the ninth session, extending the biggest monthly slide since June 2009. National stockpiles dropped 1.1 percent to 424,750 tons yesterday, exchange figures showed. This is the lowest level since the third March based on data from Bloomberg.

Articles Source:- http://www.bloomberg.com/news/2011-11-02/asian-stocks-drop-as-euro-weakens-for-fourth-day-on-greek-referendum-plan.html

Business

Wednesday, November 2, 2011

Asia Stocks Fall, Yen Gains on Greece

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