Asia stocks and dollar slip as oil climbs
Asian stocks fell on Thursday on gloom about the ability of exporters to weather a widespread economic slowdown, while the U.S. dollar slipped as oil prices rose to above $116 a barrel and halted a rally in the currency.
Stocks hurt by signs of U.S. recessionThe U.S. housing market, the source of a financial crisis that threatens to drag all Group of Seven rich nations into a recession, remained a chief concern, as shares of top mortgage finance companies Fannie Mae and Freddie Mac tumbled overnight to their lowest in nearly 20 years.
Crude prices rose for a third day after an agreement on a U.S.-Poland missile shield drew a cold response from Russia, the world's second-largest oil producer. Crude edged to above $116 a barrel, adding cost headaches to corporate managers already frazzled by shrinking demand.
"Exporters don't have power to keep rising as the U.S. and European economies are getting worse and the demand volume is declining," said Takahiko Murai, general manager of equities at Nozomi Securities in Tokyo.
Shares of high profile exporters such as Canon Inc , Samsung Electronics Co Ltd and Taiwan Semiconductor were among the top drags on their respective indexes.
Japan's Nikkei share average .N225 slipped 0.3 percent, within striking distance of chart support around 12,670, below which would mark a 4-1/2-month low.
Outside Japan, Asia-Pacific shares fell 0.7 percent, approaching a 17-month low touched on Tuesday, according to an MSCI index.
Hong Kong's Hang Seng index .HSI dropped 1.3 percent after dipping to a 1-year low on Wednesday, with a fall in China Mobile shares leading the way.
The Shanghai composite index slipped 1.7 percent .SSEC, unable to sustain momentum after posting its biggest single-day rise in four months on Wednesday.
Hopes for a near-term fiscal stimulus package from Beijing faded amid doubts about the need for government support in what is still the world's fastest growing major economy.
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