Market Report - Asia Shares Drop Yet Again

ZHANG: Asia stocks dropped for a fourth consecutive session on Wednesday, with sky-high oil prices and inflation woes punishing markets across the region. Japan's Nikkei fell 1.3 percent (13,286 ). The benchmark index is now on track to post its longest losing streak in more than 40 years. Japanese carmakers were among the big losers following news that U.S. auto sales have hit a 15-year low due to soaring gasoline prices and a weakening economy. Fresh data also showed that car giant Toyota trailed American rival GM in June, with truck sales badly hurt in the United States. Food purveyors were also under the spotlight after U.S. coffee giant Starbucks said it plans to close 600 underperforming U.S. stores to help cope with an economic downturn. Starbucks is looking to Asia to help boost growth. But other food firms in Asia are also now facing pressure of high commodity prices and weakening consumer demand. Shares in established Japanese fast food firm Yoshinoya fell to a nine-year low after it posted a 70 percent fall in operating profit for the latest quarter. Tech and electronic shares were as badly hurt as other sectors. In Korea, shares in LG Electronics tumbled after a major U.S. brokerage cut its target price on the firm because of weaker than expected handset sales. The news follows a similar move in Sony shares earlier this week after signs that its high-end mobile phone venture with Ericsson was also showing weakness.

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YouTube | July 2, 2008

Tags:. .across. .major. .electronics. .due. .stores