Asian stocks extend losses amid economic jitters

Asian stocks extend losses as investors can't shake economic jitters; Tokyo drops 2.1 percent

Asian markets extended their slide Monday as confidence about a quick economic recovery continued to wane.

All of the region's major markets lost ground, with Japan's index headed for its ninth straight loss amid reports the prime minister had decided to dissolve parliament and call general elections. Oil prices resumed their two week sell-off to trade near $59 a barrel.

Renewed anxiety about the pace of recovery in the world economy has kept stocks from rallying further after huge gains between March and June.

Investors are now looking to second-quarter corporate earnings and profit outlooks for the year, to be issued in the coming weeks, for guidance about the economy's prospects.

Unless corporate profits and major economies show more evidence of healing, markets could be hard pressed to move higher for now.

"Most people are fairly cautious, they think it's been a bit too much too soon," said Daniel McCormack, a strategist for Macquarie Securities in Hong Kong. "If economic data doesn't keep improving we could continue to drift off from here."

In Japan, the Nikkei 225 stock average dropped 191.68 points, or 2.1 percent, to 9,095.60. Hong Kong's Hang Seng shed 364.71, or 2.1 percent, to 17,343.71, while South Korea's Kospi dived 3.2 percent to 1,382.45.

Elsewhere, Taiwan's market tumbled 3.5 percent, Australia's index lost 1.3 percent and India's benchmark was down 1.4 percent.

Trade on Wall Street Friday was uninspiring amid jitters about earnings season and as a survey showed U.S. consumer confidence falling to its lowest level since March.

The Dow fell 36.65, or 0.5 percent, to 8,146.52, the lowest close for the blue chips since April 28.
The broader S&P 500 index lost 3.55, or 0.4 percent, to 879.13, while the Nasdaq composite index rose 3.48, or 0.2 percent, to 1,756.03.

Wall Street futures pointed to more losses on Monday. Dow futures were down 55, or 0.7 percent, at 8,030 and S&P futures fell 7.4, or 0.9 percent, at 866.90.

Oil prices dived in Asia trade, with benchmark crude for August delivery down 71 cents to $59.18 a barrel. The contract fell 52 cents to settle at $59.89.

The dollar was flat at 92.43, while the euro traded slightly lower at $1.3920 from $1.3944.