Asian shares down after Wall Street slumps

Asian shares extended losses in early trading Friday after the Dow Jones industrial average suffered its biggest one-day drop since August and China reported unexpectedly strong inflation.



Oil prices inched higher to near $103 a barrel Friday in Asia as traders worried protests in Saudi Arabia could escalate and hamper production in the world’s largest crude exporter.



Japan’s Nikkei 225 stock average lost 0.8 percent to 10,347.34, and South Korea’s Kospi fell 1.5 percent to 1,952.73. Australia’s S&P/ASX 200 was down 1.3 percent at 4,640.90.



Hong Kong’s Hang Seng index was down 1 percent to 23,377.92, and mainland China’s Shanghai Composite Index drooped 0.4 percent to 2,944.59.

The change in stock prices are displayed on the floor of the New York Stock Exchange. US stocks plunged Thursday on worries of higher oil prices and slowing economic growth, with the Dow, Nasdaq and S&P 500 indexes all losing more than 1.8 percent. (AFP/Getty Images/Mario Tama)

China’s February inflation held steady at 4.9 percent as the rise in food prices accelerated, adding to pressure for the communist government to control surging living costs that it worries could fuel unrest.



Inflation in food prices accelerated in February to 11 percent over a year ago, up from January’s 10.3 percent increase. That defied forecasts by many analysts, who expected food prices to ease.



In New York Thursday, weak economic news from China, the U.S. and Spain combined with a slump in oil companies to push stocks sharply lower. The Dow fell 228.48 points, or 1.9 percent, to close at 11,984.61.



Investors were jarred when China reported a surprise trade deficit in February. China’s exports fell in February as businesses closed for the weeklong Lunar New Year holiday, but imports of higher-priced oil and other goods jumped, widening the country’s deficit to $7.3 billion.



Moody’s downgraded Spain’s debt, re-igniting fears about Europe’s debt crisis. In the U.S., the government reported that new applications for unemployment benefits rose more than expected last week.



Meanwhile, escalating discontent in the Middle East and North Africa continued to weigh on sentiment. Protesters already have hampered Libya’s oil production, and concerns are growing that similar unrest could spread to the world’s largest oil exporter: Saudi Arabia.



The broader Standard & Poor’s 500 index fell 24.91, or 1.9 percent, to 1,295.11. The Nasdaq composite fell 50.70, or 1.8 percent, to 2,701.02.



In currencies, the dollar fell to 82.82 yen from 83.02 yen late Thursday. The euro stood at $1.3823 from $1.3794.



Benchmark crude for April delivery dropped 4 cents to $102.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.68 to settle at $102.70 a barrel Thursday.

Tags: Vietnam business, vietnam enterprices

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