As the Wall Street sales drop MF Global Bankruptcy
In a sign that the problem of Europe is still far completed, yields on Italian and Spanish bonds surged, pushing the European Central Bank to buy its debt, while the shares of European banks were under selling pressure.
MF Global Holdings Ltd., futures brokers who make big bets on European sovereign debt, filed Chapter 11 bankruptcy protection the U.S., making it the largest U.S. victims of the crisis the euro zone.
Financial stocks fell sharply. Morgan Stanley, which tend to perform poorly when worries about Europe increased, decreased 8.6%. Losses on Monday marked the reversal of the euphoria over the deal last week with European leaders to stem the debt crisis.
News at the end of the day that Greece asks unexpected referendum on new EU aid package to confuse investors and adds to the uncertainty.
Contributing to the downward pressure, the U.S. dollar surged to a three-month high against the yen as the Japanese government intervened to stop the appreciation of its currency, which hurt the export-based economy.
Surge in energy stocks and the dollar led to natural resource companies fell sharply. S & P energy index fell 4.4% and became the hardest hit sectors.
Despite this decline, the benchmark S & P 500 rose nearly 11% for the month of October and recorded the best monthly percentage rise since December 1991. Nasdaq also rose 11% in October, while the Dow Jones rose 9.5%.
Most of the increase occurred driven by the policy of the European leaders to improve regional bailout and recapitalization.
But despite the gains in October, the S & P 500 flat for so far this year.
The Dow Jones industrial average fell 276.10 points, or 2.26%, to 11,955.01. Standard & Poor's 500 index fell 31.79 points, or 2.47%, to 1,253.30. The Nasdaq Composite lost 52.74 points, or 1.93%, to 2,684.41.
USD / IDR Gains; But Could Fall Into 8.820 Tuesday
USD / IDR rose at 8.855 versus 8.825 after the Japanese government intervened to boost the U.S. dollar against the USD, dealers said.
"The dollar-rupiah could slip again tomorrow as the sentiment is still positive at this local unit if Japan did not intervene anymore," said a dealer.
He estimates that USD / IDR 8.820 will test support again Tuesday, with resistance at 8.880.
Led by China Shares Lower Property Developers
The benchmark Shanghai Composite Index, which tracks A and B shares, ended down 0.2% at 2468.25. The Shenzhen Composite Index rose 0.5% to 1040.93, driven by gains in media and publishing company.
Shanghai index rose 4.6% in October, the first increase in four months, but analysts say further gains may be limited in the cooling Chinese economy.
"China Promises to policy easing concerns over further monetary tightening, but can not remove the concerns on the market because the company's margins to deteriorate," said Li Lei, an analyst at Gold State Securities. "Thus, the profit-taking can not be avoided and the market trend will be very limited."
Chinese companies listed in 2304 reported a net profit growth average of 19% in the period from January to September, lower than the increase of 22% in the first half of this year, the Shanghai Securities News reported Monday, citing its own statistics.
But not all analysts pessimistic about the prospects. Amy Lin, an analyst at Care Capital Securities said the correction in the normal market because the profit of 7% in the last five sessions.
"Sharp correction in recent months have been fully appreciated in the hope of a slower economy," he said. "I think the worst for the local market on the back we promised that the government will improve policies will help the investor confidence back."
Property developers led the broader market decline due to profit taking and after the central government at the weekend urged local governments to remain vigilant in keeping real estate prices.
China Merchants Property fell 0.2% to CNY17.65 and Beijing Vantone Real Estate fell 1.6% to CNY4.27. Shares of real estate companies rose sharply on Friday after the minister's house shows that China's implementation of a home purchase limit will be removed immediately.
Banks also fell on concerns over slower earnings growth. Bank of China ended down 0.7% at CNY3.00, Citic Bank fell 1.3% to CNY4.45 and Bank of Communications fell 1.3% to CNY4.71.
However, media and publishing company bucked the trend that larger markets, extend their recent gains on expectations that the government will spend billions of yuan to support the cultural industry. Shanghai Xinhua Media rose 4.3% to CNY7.96, Huawen Media Investment rose 8.0% to CNY7.39 and the Northern United Publishing & Media Group ended up 3.3% at CNY9.97.
Tokyo Stock Exchange Closed Low; Benefits Only While Yen Intervention
Nikkei Stock Average closed down 62.08 points, or 0.7%, to 8988.39 following the 1.4% rise on Friday. End of the session selling pressure pushed the index closed at its intraday lows.
The Topix index of all First Section of Tokyo Stock Exchange also fell 7.37 points, or 1.0%, to 764.06, with 26 of 33 subindexes ended in negative territory.
The main index begins with a negative refractive players respond to the book profits after strong gains following two agreements in Europe on a plan to deal with the debt crisis in the region last week.
Shares jumped into positive territory mid-morning, however, the yen weakened as a sudden and sharp currency market intervention by the finance ministry.
Prime Minister of Japan Yoshihiko Noda said that the government intervene to avert damage to the export economy of the yen's strength.
Takuji Okubo, chief Japan economist at Societe Generale Corporate & Investment Banking, commented that the rules of Japanese official intervention in the yen made to withstand the strength of the yen, but not to weaken the yen.
"The conditions in which they intervened at this time according to the rules of a perfect rule of conduct also states that the yen should not weaken too much because of the intervention."
He pointed out that the dollar, which rose from the mid-level mid-Y79 Y75 until the close of trading on the stock market at 0600 GMT.
Meanwhile, the euro also rose sharply, breaking the mark Y111.
Shares of major Japanese exporters rose by Canon, Nikon, Kyocera and other currency-sensitive stocks rose sharply. But the advantage did not last long due to profit taking soon enter each of the three successful dututup higher on the day, closing up 1.0% to Y3, 600, up 1.8% to Y1, 789, and up 0.9 % at Y7, 010, respectively.
But stocks like Honda Motor and Fanuc down. The pair ended down 3.7% at Y2, 406 and down 1.1% at Y12, 930. Honda shares may also have been influenced by a Nikkei report that flooding might force Thailand to shut down a key plant for six months.
Tokyo Electron is among a number of companies that will report results after the market close of business Friday. The company said that net income for the second quarter fell 46% from a year earlier. Some analysts say the numbers as expected. The company also revised its outlook for full year net profit of Y34 billion to Y40 billion.
Other companies reacted negatively to the business results delivered Friday to Seiko Epson, which ended down 1.0% to Y1, 054 after posting second-quarter operating profit of Y3.1 billion, slightly below its guidance of Y3.4 billion.
Important reporting company during trading hours, including Fujifilm Holdings, which closed down 2.3% at Y1, 950 after saying sales and earnings for the fiscal first half ended September 30, down from the previous year due to strength of the yen and higher raw material costs.
Drugmaker Daiichi Sankyo also lost 3.5% to Y1, 536 after saying that net income for the three months through September declined 39% from a year earlier. It also lowers full-year earnings outlook for the yen and the decline in unit sales in India, Ranbaxy Laboratories.
Konica Minolta Holdings stock up 4.1% at Y580 after a quarter better than expected second solid. The company cuts full-year operating profit target to Y40 billion from Y42 billion.
December Nikkei 225 futures closed down 90 points, or 1.0%, in 8960 at the Osaka Securities Exchange.
Crude Oil Still Down; Meeting of the Central Bank, U.S. Jobs Eyed
Crude oil will remain low as continued profit taking on a stronger dollar against major currencies amid a relatively thin trading. "Traders are trying to find a cue that the way to go," said Mitsubishi UFJ Research Consulting analyst Tomomichi Akuta, on doubts over how the rescue plan will work.
In addition to meeting the U.S. Federal Open Market Committee on Tuesday and Wednesday, the ECB monetary policy decision on Thursday, and U.S. jobs data on Friday will be in focus, he added. Nymex December crude oil fell 90 cents at $ 92.42/bbl on Globex ICE December Brent is off 91 cents at $ 109.00/bbl.
Wait G20, Asia Oil Stable
World oil in Asian trade on Monday (31/10) is stable as investors awaited the results of the G20 meeting this week in Paris.
U.S. crude oil types liight sweet rose 5 cents to U.S. $ 92.46 per barrel through electronic trading on the New York Mercantile Exchange (NYMEX). While Brent crude fell 1% to U.S. $ 109.90 per barrel in London.
On Saturday last week, Spain and Portugal confirm European debt crisis is a global problem. They called on the U.S. and the G20 to help find a solution. G20 group will meet this week in Cannes, France on 3-4 November.
U.S. dollar exchange rate had the lowest pressure against the yen to 75.77 yen in Asian trade today. This is potentially the more confirmed kebiajakan Japanese government to intervene.
Closed Kospi down 1.1%; Support Soon 1900
Although the lower end, the index rose nearly 8.0% in October as fears of recession, the market potential of the global economic decline compared with September and August.
Analysts peg the immediate support for the index in 1900, then around 1850, with resistance at the psychologically important 2000 mark for the short term.
Broad-based losses, with some chemical stocks heavyweight reported a sharp decline after the rise recently; SK Innovation fell 3.9% to KRW170, 500 and LG Chem fell 4.2% to KRW364, 000.
Among banks, KB Financial down 3.6% to KRW43, 400 following 3Q results are below expectations. On the rising edge, the electronics giant Samsung Electronics rose 2.4% to KRW968, 000 on hopes for better 4Q earnings.
