Asia markets tumble

Asia markets tumbled on Monday with exporters such as Sony hurt by signs of a stalling U.S. economy. Japan's Nikkei fell 2.2 percent (15,765), a 3 week low as investors eyed weak U.S. and European markets. Investors were also unnerved by the latest Japan data, showing the world's second largest economy contracted by more than expected in the second quarter. The news reinforced views that the Bank of Japan is unlikely to raise interest rates next week amid a global squeeze on credit. Korean exporters were also badly bruised by the market slump. Panel maker LG. Philips fell nearly 5 percent. U.S. sales account for about a third of the firm's revenues. But there were some bright spots. Hong Kong's listed bourse operator, Hong Kong Exchanges and Clearing, jumped on news the local government became its biggest shareholder. Analysts believe the move could herald future alliances with fast rising mainland exchanges such as Shanghai. Asia markets will now look to direction from the U.S. opening on Monday and with attention also firmly focused on the U.S. Federal Reserve. The U.S. Central Bank meets later this month with a cut in interest rates now widely expected. Tara Joseph-Hui reporting for Reuters. COMPANIES MENTIONED: Sony, LG. Philips, Hong Kong Exchanges and Clearing SYMBOLS: 6758.T, 034220.KS, 0388.HK

Submission | September 10, 2007

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