Jan. 8 (Bloomberg) -- Asian stocks fell, wiping out most of the benchmark index’s 2009 gains, as concern global economic conditions are worsening dented the outlook for profits and drove oil prices lower.
The MSCI Asia Pacific Index dropped 2.1 percent to 90.40 as of 10:11 a.m. in Tokyo, trimming its gain this year to 0.8 percent. The gauge slumped 43 percent in 2008, its worst annual loss in its 20-year history. The index has rebounded 20 percent in the past six weeks as interest rate cuts and spending packages by governments from India to Australia boosted confidence in a swift recovery of the economy.
“We’ve seen strong rallies on hopes that all the stimulus spending will start to kick in,” said Nader Naeimi, a Sydney- based senior investment strategist at AMP Capital Investors, which manages about $85 billion. “The fact that unemployment is picking up creates nervousness, and shifts the focus back onto the broader economic challenges.”
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