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Asia stocks slump on disappointing Japan Data
Japanese machinery orders fell more than expected following a disappointing US jobs report.
Asian shares slumped on Monday in morning trade ahead of China inflation figures and after Japanese machinery orders fell more than expected following a disappointing US jobs report.
The MSCI Asia Pacific Index declined 0.8% to 118 as of 11:02 a.m. in Tokyo. Japan’s Nikkei 255 Stock Average slid 1% and the broader Topix Index lost 0.9%. South Korea’s Kospi declined 1.2% and Australia’s S&P/ASX 200 Index retreated 1%.
Equities declined after Japanese machinery orders, an indicator of capital spending, fell 14.8% in May from the previous month, the Cabinet Office said. Economists expected a 2.6% decline. The figures came after official data showed U.S. employers added 80,000 new jobs in June, below 90,000 forecast.
In China, Premiere Wen Jiabao said downward pressure on the economy is still “relatively large” and the government will intensify fine-tuning of policies even as measures taken since April are helping to stabilise a slowdown.
In corporate news, Komatsu Ltd., a Japanese maker of construction equipment, lost 3.1%. BHP Billiton Ltd., the world’s biggest mining company, slid 1.6% as metals prices dropped. Iluka Resources Ltd. tumbled 18% after the Australian miner said revenue will miss estimates.
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