BANGKOK - Asian markets have been much more low Monday in the signs of economic sluggishness U.S. and the escalation of concerns about Europe's debt crisis after the Italy and the Greece was slapped with credit downgrades.
Oil prices fell nearly US $99 per barrel Monday in Asia as a stronger commodities US dollar is more expensive for investors with other currencies.
Nikkei 225 of the dragged Japan 1.4% to 9,474.83; ABN Korea in the South dropped 1.8% to 2,073.01 and index of Hang Seng Hong Kong collapsed 1.6% to 22,817.95.
Shares of the Japanese automaker Honda Motor Corp. declined by 1.6%, the company announced that its workers would take 14 days off the coast of this summer due to the interruption of production caused parts shortages. Working days will be composed for these days later in the year.
Operations at Honda, as scores of other manufactured goods, was severely hampered after a devastating earthquake and tsunami March 22 hit industrial of the Japan to the Northeast. The region, largely cleared, was home to hundreds of companies that manufacture parts for power in the country, the manufacturing industry.
In Europe, at the same time, Standard & Poors cut its Outlook of ratings for the debt of the Italy of negative stable to Saturday, citing the prospects of poor growth and concerns about the ability of the Government to reduce public loans of the country. But with a perspective of ratings always A + / negative Italy, much better than the Greece rest.
Credit ratings agency Fitch cut the credit rating for long-term Greece more in status junk Friday, saying that indebted countries faces challenges change its economy and the Government to reduce the debt. Investors remain worried that the Greece will have to stretch its debt or pay less than what they are owed creditors. Europe, particularly those of the Greece banks hold lots of Greek bonds, and a restructuring can hurt them.
Also in Europe, Spain regional elections last weekend, leading to speculation that the new politicians may say that the country is still deeply in debt and the current Government had planned. This raises the possibility that Spain should attempt a rescue, following the path of the Greece, the Ireland and Portugal.
In New York Friday, stocks closed lower for a third consecutive week on the signs indicating that the weakening of the US consumer demand.
Retailer Gap Inc. and the Atlantic Inc. has lost more than 14% Friday after having cut their forecasts of profit for the year, in part because of the costs for raw materials and sluggish sales. It was a worrying sign for investors who had counted shoppers to lead a recovery of the expenses.
The Dow Jones industrial average fell by 0.7% to 12,512.04. The standard & poor 500 index lost 0.8 per cent to 1,333.27. The Nasdaq composite dropped to 0.7 per cent to 2,803.32.
May is traditionally a month low for the stock markets. Traders have little basis to buy and sell decisions on with the season of the benefits of formally more businesses and limited economic news.
Benchmark crude for June delivery fell $1.11 98.99 to $ US per barrel in electronic trade on the New York Mercantile Exchange.
The euro fell against the greenback to $1.4085 of $1.4201 in late trading in New York Friday. The dollar strengthened the yen yen 81.57 81.93.
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