Market Report – Nikkei Hits 13 Month Low, Yen Gains

In today’s market report… Asian stocks fell to their lowest in about three weeks Thursday, dragged down by the strong yen and the latest round of weak global economic data.

Investors fled to the safety of the dollar and the yen, after a widening U.S. trade gap suggested that second quarter U.S. GDP growth was weaker than previously thought, as well as a cut in the UK’s growth forecast.

The yen hit a 15-year high against the dollar, which pushed Tokyo’s Nikkei to a 13-month low. Names like Sony and Nissan were all down sharply, although some of the automakers regained lost ground by the close.

Shares in Hong Kong and Taiwan also fell on similar worries about the growing possibility of a double-dip recession.

South Korean shares showed little reaction to a Bank of Korea decision to keep rates on hold, with steelmaker POSCO leading the KOSPI down to a three-week low. The Seoul benchmark lost over two percent.

Australia’s All Ordinaries was not spared, falling the most in 3 weeks, dragged over one percent lower by the growth-oriented mining and banking stocks.

Home building materials supplier James Hardie returned to profit, but its shares slumped nearly eleven percent, after saying that the recovery in its key U.S. housing market was disappointing.

Foto: NTDTV