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