Japan's Nikkei 225 Stock Average rose, reversing an early decline,
as investors sought companies whose earnings are resilient against an
economic slowdown.
Takeda Pharmaceutical Co., the nation's
largest drugmaker, advanced 6.2 percent, while Japan Tobacco Inc., the
world's third-largest listed cigarette maker, gained 8.5 percent.
Nippon Yusen K.K., the nation's biggest shipping line, dropped 6
percent after transport fees for commodities fell to a three-year low
and UBS AG cut its share-price target.
The Nikkei 225 climbed 99.90,
or 1.1 percent, to 9,547.47, reversing from a 1.9 percent decline. The
broader Topix index slipped 0.79, or 0.1 percent, to 955.51 after
earlier dropping 3 percent. About eight stocks climbed for every seven
that retreated on the Topix.
Japan's Ministry of Finance today
reported the nation's biggest-ever trade deficit as soaring energy
costs drove up the nation's import bill by 20 percent in August from a
year earlier, while exports inched up 0.9 percent.
Mizuho
Financial Group Inc., Japan's second-largest publicly traded bank, rose
3.4 percent to 393,000 yen, while bigger rival Mitsubishi UFJ Financial
Group Inc. gained 1.4 percent to 821 yen. The Topix Banks Index
recovered from a 3 percent decline today, closing up 0.4 percent.
Tokyo
Gas Co., Japan's largest natural gas distributor, surged 8 percent to
391 yen, its steepest gain since December 1999. Tohoku Electric Power
Co. rose 6.7 percent to 2,150 yen.
European stocks fell
for the first time in three days after U.S. retail sales tumbled and
U.K. unemployment climbed to the highest in almost two years,
heightening concern economies are slipping into recession.
BHP
Billiton Ltd. dropped 15 percent and Xstrata Plc plunged 20 percent as
copper retreated and concern deepened $2 trillion in funds for banks
won't be enough to stave off a global economic contraction. Vedanta
Resources Plc tumbled 17 percent as the global credit crisis threatened
the purchase of Asarco LLC. KBC Group NV slumped 19 percent after
reporting a net loss in the third quarter.
Copper, lead, tin and nickel prices slid on the London Metals Exchange.
Rio
Tinto Group, battling a $86 billion takeover bid from BHP Billiton, may
delay the planned sale this year of $10 billion of assets because of
the global financial crisis. The shares lost 17 percent to 2,357 pence.
Vedanta
fell 17 percent to 746 pence. Lawyers said the $2.6 billion purchase of
bankrupt copper producer Asarco by Sterlite Industries (India) Ltd., a
unit of London-based Vedanta, won't be completed after Sterlite told
Asarco to cut its asking price.
The credit crisis has increased
borrowing costs as declining metal prices hurt the outlook for
earnings, thwarting acquisitions and expansions.
Total, Europe's
third largest oil producer, lost 6.9 percent to 36.56 euros as crude
fell as much as $4.06, or 5.2 percent, to $74.57 a barrel on the New
York Mercantile Exchange.
U.S. stocks slumped for a second
day, hammered by the biggest drop in retail sales in three years and
growing doubt that plans to bail out banks will keep the nation out of
a prolonged recession.
Exxon Mobil Corp. and Chevron Corp.
tumbled more than 8 percent as commodity prices declined on concern the
slowing economy will hurt demand. Wal-Mart Stores Inc. retreated 5.8
percent after the Commerce Department said purchases at chain stores
decreased 1.2 percent last month. Morgan Stanley lost 15 percent after
Oppenheimer & Co. analyst Meredith Whitney said the government's
bank rescue is not a ``panacea'' solution.
The retreat over the
past two days erased more than half of the gains in the S&P 500 and
Dow on Oct. 13, when the market rallied the most since the 1930s on
speculation the government's plan to shore up banks will ease the
credit crisis. Efforts to calm financial markets and stem the credit
crisis probably won't result in an immediate economic rebound, Federal
Reserve Chairman Ben S. Bernanke told the Economic Club of New York.
All
10 S&P 500 industries fell more than 2.5 percent today. The
declines came after the drop in retail sales was almost twice
economists' estimates, sending Office Depot Inc., Target Corp. and Best
Buy Co. down more than 6 percent. The Federal Reserve's index of New
York manufacturing slumped to minus-24.6, a record low. The data
overshadowed a retreat in money-market rates and better-than-estimated
earnings reports from JPMorgan Chase & Co., Coca-Cola Co. and Intel
Corp.