| TOKYO - Most Asian stocks fell sharply on Monday, | | | | Benchmarks also rose in Hong Kong. The Hang Seng |
| dragged down by heavy losses on Wall Street after a | | | | Index edged up 17.09 points, or 0.07 percent, to close |
| surprise drop in US payrolls sparking fears the world's | | | | below the 24,000 level at 23,999.70 Monday. |
| largest economy may be heading for recession, | | | | In Hong Kong most shares "were under selling |
| dealers said. | | | | pressure after Wall Street's sharp falls last Friday and |
| Investors are now pinning their hopes on a US Federal | | | | on concerns over the health of the US economy," said |
| Reserve interest rate cut to shield the economy from | | | | Kitty Chan, director at Celestial Asia Securities |
| the fallout from the housing slump, they added. | | | | Holdings. |
| Asian stocks suffered a heavy selloff after US and | | | | "US employment has been growing for the past four |
| European markets were rattled by news that the US | | | | years so the fall was pretty scary," said Hirokazu Fujiki, |
| economy lost 4,000 payroll jobs in August, the first | | | | equity strategist at Okasan Securities. |
| decline in four years and far below market | | | | "At the same time what is supporting stocks is |
| expectations. | | | | expectations for a cut to the Fed funds rate on |
| Adding to the jitters about the health of the global | | | | September 18. Investors are waiting ahead of |
| economy, Japan said its economy shrank by 0.3 | | | | developments in the US. That's why there wasn't a |
| percent in the three months. | | | | shock selloff," he added. |
| The Nikkei 225 Stock Average closed down 357.19 | | | | The Dow Jones index lost 1.9 percent Friday after |
| points or 2.2 percent at 15,764.97, with exporter shares | | | | markets took fright at the drop in payroll jobs in the US |
| being particularly hard hit. | | | | economy. |
| Elsewhere, Seoul gave up 2.6 percent as the KOSPI | | | | The report stoked fears of a US recession, despite |
| index closed down 49.03 points to 1,835.87. Manila | | | | assurances from the Fed that the US economy was |
| declined 1.6 percent while Kuala Lumpur and Jakarta | | | | holding to a modest growth rate and that the slump in |
| both slid 1.4 percent. | | | | housing had been contained, dealers said. |
| However, Chinese stocks recovered from early | | | | "The US employment data reinforced investor |
| losses Monday. | | | | uncertainties about the future course of the US |
| The benchmark Shanghai Composite Index gained | | | | economy on top of ongoing worries about subprime |
| 78.11 points, or 1.5 percent, to 5,355.29. The Shenzhen | | | | loans," said Katsuhiko Hiroshige, a market analyst at |
| Composite Index rose 1.5 percent to 1,479.12. | | | | Traders & Co. |
| "Volatility in the market will likely be high on | | | | Investors hope that the US can avert a recession if |
| expectations another interest rate hike may happen in | | | | the Fed acts swiftly and aggressively to lower |
| coming weeks following the August consumer price | | | | borrowing costs, which could help ease the US housing |
| figures," said Chen Huiqin, an analyst at Huatai | | | | crisis and the US credit squeeze. The federal funds |
| Securities. | | | | rate now stands at 5.25 percent. |