World stock markets slide as dour US economy news renews concerns about slowdown

World stocks slide after dour US economy news

BANGKOK — World markets dropped Friday as more dour reports on the U.S. economy renewed concerns about a slowing recovery and sent stock investors packing.

Wall Street set the stage for Asia and Europe’s losses after figures showed an unexpected rise in first-time claims for U.S. unemployment benefits and a drop in manufacturing activity in the Philadelphia region.

The numbers spooked investors around the globe, some taking them as a sign that the world’s largest economy is headed back to recession.

The “jury is still out as to whether bulls or bears will be sure winners given an uncertain economic outlook and poor U.S. economic data,” Taiwan International Securities said in a report. “Investors ought to stay cautious and are advised to under weigh stocks until the risks and negative sentiment subside.”

Oil prices, meanwhile, wallowed below $75 a barrel amid expectations that demand for crude will weaken.

Early in Europe, Germany’s DAX dropped 0.5 percent to 6,042.12, France’s CAC-40 was off 0.5 percent at 3,555.39 and Britain’s FTSE 100 fell 0.2 percent to 5,200.45.

Futures augured slight gains on Wall Street with Dow futures ahead by 1.2 points, or 0.1 percent, to 1,072.50 and broader S&P futures up 11, or 0.1 percent, to 10.246.00.

Japan’s benchmark Nikkei 225 stock average retreated 183.30, or 2 percent, to 9,179.38 and South Korea’s Kospi dropped 0.2 percent to 1,775.54.

Australia’s S&P/ASX 200 index faded 1.1 percent to 4,430.90 ahead of national elections Saturday and the Shanghai Composite Index shed 1.7 percent to 2,642.31.

Adding to the glum mood in China was uncertainty stemming from Beijing’s announcement earlier in the week that it would examine the finances of heavily indebted local government agencies set up to invest in real estate and infrastructure.

“It showed that the scrutiny is getting into a substantial stage, and that might hurt earnings of real estate developers or banks,” said Li Jun, an analyst for Central Securities in Shanghai.

Elsewhere, Hong Kong’s Hang Seng gave up 0.4 percent to 20,984.29. Markets in Singapore, Taiwan, India, and New Zealand also fell while Malaysia, Thailand and Indonesia posted moderate gains.

The Dow Jones industrial average fell 144 points, or 1.4 percent, to 10,271.21 on Thursday. The broader Standard & Poor’s 500 index fell 18.53, or 1.7 percent, to 1,075.63, while the Nasdaq composite index fell 36.75, or 1.7 percent, to 2,178.95.

In currencies the dollar rose to 85.38 yen from 85.26 yen late Thursday in New York while the euro slipped to $1.2824 from $1.2819.

Benchmark crude for October delivery was up 9 cents to $74.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 99 cents to settle at $74.43 on Thursday.

Associated Press researcher Bonnie Cao in Beijing contributed to this report.