Stocks hurt by signs of U.S. recession
Fresh signs that the U.S. economy may be in recession sent Asian stocks lower on Friday, with Shanghai shedding more than 4 percent, as investors took shelter in the relative safety of government debt.
Stocks up on rate cut hopesEuropean stock markets are expected to follow suit, although with more modest losses. Spread betters in London are calling the FTSE 100 down 0.4 percent, Germany's Dax down 0.7 percent and France's Cac-40 0.8 percent lower.
Concern about the fading U.S. economy dragged crude oil prices further from a record high above $101 a barrel. Platinum was a bright spot, soaring to yet another record high.
The Philadelphia Federal Reserve's business activity index for February was at its lowest level since 2001, providing more evidence that the U.S. economy may already be in recession.
"Whether the U.S. is in recession or not, I'll leave it to the economists, but we are going to have an extended downturn simply because the U.S. debt market is in such a difficult state," said Neale Goldston-Morris, head of strategy at Macquarie Equities.
"The market is very edgy at the moment and this will continue for an extended period of time."
Japan's benchmark Nikkei shed 1.4 percent, handing back most of Thursday's gain, while MSCI's index of other Asian stocks fell 0.9 percent by 6:12 a.m. (British time). It is 25 percent below its November peak.
For months investors have feared that the United States is sliding into recession and any equity rally has been quickly sapped by bad news - often yet another credit-related write-down by a big bank.
Only this week Credit Suisse revealed a $2.85 billion (1.45 billion pounds) write-down and Societe Generale, rocked by a rogue trading scandal, said there may be more to come.
Stock markets across Asia fell, with Australia, South Korea, Singapore and Hong Kong falling between 0.4 percent and 1.8 percent.
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