(RTTNews) - The stock markets across the Asia-Pacific region are trading sharply lower on Monday amid concerns about the health of the U.S. economy. The move by the U.S. House of Representatives Friday to pass the government’s $700 billion financial sector bailout bill failed to boost investor sentiment. The U.S. dollar rose against the euro on concerns over further credit-related damage from European banks, but it declined sharply against the yen. Oil prices continued to slide, as fears of a global economic slowdown heightened concerns that demand for oil would fall.

The major U.S. averages fell after Friday’s U.S. jobs report showed the biggest fall in more than five years. The Dow closed down 157 points or 1.5% at 10,325, the Nasdaq dropped 29 points or 1.5% to 1,947.39, and the S&P 500 gave away 15 points or 1.4% to 1,099.

At 10:35 p.m. ET, crude oil futures traded at $92.02 a barrel, down $1.86. The contract for November delivery dropped 9 cents to settle at $93.88 a barrel on Friday in New York trading.

The U.S. dollar traded in the mid 104-yen levels in early Tokyo deals, down from Friday’s close in the lower 105-yen range in Tokyo. In South Korea, the won fell nearly 5% to its lowest level in six and a half years against the dollar. In early trade, the won was quoted at 1,286.9 a dollar, down from Thursday’s domestic close of 1,223.5 a dollar.

The Australian dollar opened weaker for a ninth straight session. The Aussie opened at US$0.7680-0.7686. In early trades, the kiwi was buying US$0.6602 compared to US$0.6622 in late trades on Friday.

The Japanese stock market was trading sharply lower, extending its losses for the third consecutive trading session. At 8:46 p.m. ET, the benchmark Nikkei 225 index was down 280.96 points or 2.57% at 10,657.18. The broader Topix index of all First Section issues on Tokyo Stock Exchange was losing 25.51 points to 1,022.46.

On the economic front, the Bank of Japan is scheduled to kick off its two-day monetary policy meeting on Monday in Tokyo. The central bank will announce its interest rate decision on Tuesday. The bank is widely expected to keep interest rates on hold at 0.50% for the 23rd consecutive month.

Stocks declined almost across the board, led by real estate, iron and steel, and machinery issues.

Sumitomo Realty & Development plunged 5.2%, Mitsui Fudosan tumbled 6.4% and, Mitsubishi Estate fell 5.9%. In the steel sector, Nippon Steel sank 7.5% and JFE Holdings slumped 7.6%. Among machinery makers, Komatsu lost 6.1%, and Hitachi Construction plummeted 7.4%.

Among financial stocks, Mitsubishi UFJ lost 6.8%, Mizuho Financial declined 5.5%, and Sumitomo Mitsui shed 2.7%. Top brokerage Nomura Holdings fell 3.4%.

In the tech sector, Advantest declined 5.5%, Fujitsu lost 4.0%, Fanuc dropped 2.6%, and Kyocera plummeted 4.8%.

Among oil-related stocks, Inpex Holdings slipped 0.7%, Nippon Oil gave away 2.1%, and Nippon Mining Holding shed 4.8%.

Bucking the trend Takeda Pharmaceutical rose 0.7% and Daiichi Sankyo gained 2.1%.

The South Korean stock market was trading sharply lower, extending its losses for the sixth straight trading session. At 10:11 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was down 63.14 points, or 4.45%, at 1,356.51.

In the tech space, Hynix Semiconductors plunged 4.7%, market heavyweight Samsung Electronics shed 2.8%, LG Display gave away 5.4% and LG Electronics lost 3.4%.

Automaker Hyundai Motor fell 3.0% and steelmaker POSCO plummeted 6.7%.

In the financial sector, Shinhan Financial Group tumbled 5.9% and Woori Finance fell 2.2%. Top brokerage Samsung Securities dropped 3.7% and Mirae Asset Securities slumped 9.2%.

The Australian stock market was trading sharply lower, extending losses for a third stright trading session. Investors were also cautious ahead of Tuesday’s Reserve Bank of Australia policy meeting. The central bank is widely expected to announce a 50 basis point rate cut.

At 8:41 p.m. ET, the benchmark S&P/ASX 200 index was down 92 points or 1.95% at 4,604, after closing down 0.7% on Friday. The broader All Ordinaries index was losing 92 points or 1.95% to 4,611.

On the economic front, wage agreements data for the second quarter is scheduled for release. Labor contracts showed a pay rate increase of 3.7% for the first quarter.

Among banking stocks, Commonwealth Bank lost 1.67%, National Australia Bank was down 3.82%, and ANZ Banking Group fell 2.46%. Westpac slipped 2.33%, investment bank Macquarie Group dropped 5.29%, and rival St. George bank declined 2.39%.

In the resources sector, index leader BHP Billiton edged down 0.72%, and Rio Tinto fell 2.42%. Gold miners were weaker, after gold closed sharply lower on Friday. Lihir Gold fell 4.18%, and Newcrest Mining plunged 2.90%.

Among energy stocks, Woodside lost 1.68%, Santos edged down 0.11%, and Oil Search fell 5.71%.

Australia’s third largest oil and gas producer Santos completed an A$300 million off-market share buyback. The company purchased 18.5 million shares, or 3.1% of its issued capital, at a price of A$16.23.

In the retail sector, David Jones dropped 1.61%, Coles’ owner Wesfarmers lost 1.23%, and giant retailer Woolworths fell 1.52%.

Insurance and banking group Suncorp-Metway’s shares soared 6.9% after it said that it had been approached by several parties looking to acquire its banking and fund management operations.

The New Zealand stock market was trading sharply lower, posting losses for the second straight trading session. At 8.00 PM ET, the benchmark NZX 50 Index was declining 64.97 points or 2.06% to 3086.56, while the broader NZX All Capital Index was losing 53.45 points or 1.68% to 3,136.71.

In economic news, traders get a look at a forecast of New Zealand’s economy as the nation heads toward elections in November. The 2008 Pre-Election Economic and Fiscal Update is scheduled for release later today. The incumbent Labor Party, headed by Prime Minister Helen Clark, has been governing for about nine years. In the current year, data indicates the nation has fallen into economic recession.

Among the top stocks, Telecom lost 2.08%, Contact Energy slid 2.76% and Fletcher Building shed 3.22%.

In the retail space, jeweler Michael Hill fell 6.49%, Pumpkin Patch shed 3.08%, The Warehouse Group gave away 0.63% and Hallenstein Glasson remained unchanged.

Among other stocks, Nuplex dipped 4.88%, Sky City slipped 2.23% and Steel & Tube eased 0.53%. Pike River Coal rose 4.37%. Energy stock TrustPower remained unchanged and Vector declined 0.47%.

Dual-listed stock AMP tumbled 5.88%, Lion Nathan dropped 4.68%, ANZ Banking declined 1.38% and Westpac gave away 1.65%.

Other Asian markets

Hong Kong’s Hang Seng index is down 2.8% at 17,195; China’s Shanghai composite index is down 3.2% at 2,219; Singapore’s Straits Times index is down 2.6% at 2,241; Taiwan’s weighted index is down 3.4% at 5,544; Indonesia’s Jakarta Composite index is down 5.1% at 1,739; and Malaysia’s KLCI is down 8.5 points at 1,008.

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Posted in Categories: Australia, Economy, Eurozone, Japan, New Zealand, Releases, USA.

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