Asian Stocks Tumble as Crisis Hits Italy; Banks, Exporters Dive (Bloomberg)
Asian stocks plunged, with the regional index headed for its biggest drop in two months, after Japan’s machinery orders dropped, China’s export growth slowed and signs emerged Europe’s debt crisis has infected Italy. HSBC Holdings Plc (HSBA), the U.K.’s largest lender by market value, sank 8.1 percent in Hong Kong after profit at its investment bank declined amid political and economic uncertainty in Europe. Fanuc Corp. (6954), a maker of industrial robots, slipped 4.1 percent in Tokyo. Noble Group Ltd. (NOBL) slumped 26 percent in Singapore, its biggest plunge since 1998, as Chief Executive Officer Ricardo Leiman quit after the Hong Kong-based commodity supplier posted its first loss in 14 years.
“Europe’s problems are structural and require more than a tinkering on the edges to resolve,” said Lee King Fuei, a Singapore-based fund manager at Schroders Plc, which has about $326 billion of assets globally. “Solving these problems will require a fair bit of pain among citizens. Even if politicians know the right solutions, they risk getting kicked out. The global economic environment looks very challenging.”
FOREX-Euro steadies after selloff, but looks shaky
TOKYO, Nov 10 (Reuters) - The euro steadied on Thursday as real-money players stuck to the sidelines after a selloff the day before on a spike in Italian borrowing costs, but options positioning suggested more drops ahead as fears of global financial turmoil grip markets.
The euro licked its wounds sustained on Wednesday in its worst one-day beating against the dollar in 15 months after yields on 10-year Italian bonds spiked above 7 percent, a level where the cost of financing a debt burden of more than 2 trillion euros is seen as unsustainable.
Stocks dive as bond yields push Italy to the brink
SINGAPORE, Nov 10 (Reuters) - Asian stocks fell sharply after soaring Italian borrowing costs stoked fears the debt crisis in the euro zone's third biggest economy will overwhelm its financial defences, raising the risk of a break-up of the currency area. "Whatever they come up with, it doesn't avoid a European recession," said Su-Lin Ong, senior economist at RBC Capital Markets in Sydney.
U.S. soy at 1-mth low as European debt crisis deepens
SINGAPORE, Nov 10 (Reuters) - U.S. soy slid to a 1-month low, falling for four out of five sessions, while corn and wheat lost ground as Europe's worsening debt crisis offset the bullish fundamental factor of tight world supplies.
"Given that yesterday's mildly supportive USDA data did not help corn register any gains, the market is likely to take direction from larger economic concerns," said Lynette Tan, an analyst with Phillip Futures in Singapore.
China Oct soy imports fell to 7-month low at 3.81 mln T-Customs
BEIJING, Nov 10 (Reuters) - China, the world's largest soy buyer, imported 3.81 million tonnes of soybeans in October, down 7.7 percent from 4.13 million tonnes in September, figures from the General Administration of Customs of China showed on Thursday.
October imports were the lowest since March and also below forecasts by analysts and the commerce ministry, which had predicted a level slightly higher than 4 million tonnes. Traders and analysts blamed the lower number on delayed customs clearance.
Brazil gov sees lower soy, higher corn crop output
SAO PAULO, Nov 9 (Reuters) - Brazil's soybean crop could suffer its biggest annual drop in decades, the government said on Wednesday, the same day the USDA said Brazilian soy exports this season would overtake those from the United States, the long standing leader.
Drawn by the appealing price of corn and faced with potentially irregular weather from La Nina, local soy producers are likely to harvest 71.48 million to 72.96 million tonnes of soy in the 2011/12 crop, down from October's estimate of 72.18-73.29 million tonnes, the agriculture ministry's crop supply agency Conab said.
Brazil to top U.S. in global soybean trade battle
CHICAGO/SAO PAULO, Nov 9 (Reuters) - Brazil will wrest the mantle of world's top soybean exporter from the United States in the coming year, U.S. government data showed on Wednesday, signaling a shift in global trade driven largely by China.
Analysts said the battle between the two countries, which together control 76 percent of global exports, however, is far from over even as production grows in Brazil while stagnating in the United States due to limited land, factors like currencies, weather and freight rates will play key roles.
Corn 2012 output under threat from rising inputs: Maguire
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum. --
CHICAGO, Nov 9 (Reuters) - Conventional wisdom holds that U.S. farmers will be strongly committed to increasing corn production in 2012 thanks to historically high prices, robust end-user demand and low global inventories.
But corn prices, off their highs by more than $1 a bushel, are now only 12-13 percent above year ago levels, and input costs are on average 25 percent higher. Farmers are just starting to weigh production options for 2012. If corn prices weaken further while input costs stay strong, they may be more inclined to scale back rather than increase corn production.
Brent steady above $112; Italy debt weighs
SINGAPORE, Nov 10 (Reuters) - Brent crude was steady above $112 a barrel, after sharp falls a day earlier, as hopes of resilient oil demand from China partly offset growing concerns over Europe's debt crisis. "The Chinese data is giving support to a market that is pulling away from risk because of what is happening in Europe," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "We've moved from a low-growth scenario to one where there is a real threat of recession in the euro zone, and that's weighing on oil markets."
China Oct crude imports down 1.6 pct vs Sept
BEIJING, Nov 10 (Reuters) - China imported 20.80 million tonnes or 4.9 million barrels per day of crude oil in October, 1.6 percent less than a month earlier and below the 5 million bpd mark for the fifth month in a row, customs data showed on Thursday.
But the imports were nearly 27 percent higher than the 3.86 million bpd in October last year, which was by then the lowest since April 2009.
IEA fears oil spike; OPEC dreads European defaults
LONDON, Nov 9 (Reuters) - Oil prices could hit economically damaging record highs if unrest in Africa and the Gulf cuts investment in output, the West's energy watchdog warned oil producers, which said the real problem was likely defaults among euro zone members and banks.
The International Energy Agency (IEA), which advises major oil-consuming countries on energy policies, said on Wednesday oil prices could spike by a third to above their all-time high of $147 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) said the main risks were of price falls.
Price correction to boost China Oct oil, copper imports
SHANGHAI, Nov 9 (Reuters) - China is expected to import more crude oil, soy and copper in October, a sign that demand for some commodities in the world's second-largest economy has remained resilient in the face of an impending global slowdown.
A recent dip in crude oil prices appears to have encouraged the world's second-largest consumer of the fuel to stock up before winter bites, while weaker copper prices also spurred traders to stock up on the metal in anticipation of a pick up in manufacturing activities next year.
Shanghai copper hits limit down; Italian woes weigh
SHANGHAI, Nov 10 (Reuters) - London copper futures fell to their lowest level in two weeks and Shanghai prices slid by their 6 percent limit as a mounting debt crisis in Italy heightened fears about the global economy, fuelling a flight out of riskier assets. "Copper has fallen due to the bad news about Italy's finances," said CIFCO Futures analyst Zhou Jie.
China Oct refined copper output hits five-month low
HONG KONG, Nov 9 (Reuters) - China's production of refined copper fell to its lowest level in five months in October, its second decline in as many months, due to a shortage of raw materials and output may drop again in November as scrap imports fall.
Refined copper production stood at 469,000 tonnes in October, a drop of 2.1 percent compared to September, but a 16.4 percent increase on the same month a year ago, data from the National Bureau of Statistics showed on Wednesday. Output reached a monthly record 518,000 tonnes in August.
China Oct copper imports rise 0.8 pct on month
HONG KONG, Nov 10 (Reuters) - China's imports of unwrought copper and semi-finished copper products rose 0.8 percent from the previous month to a 17-month high in October due to steady demand from consumers and investors, extending an 11.8 percent gain in September.
Arrivals of copper, which include anode, refined, alloy and semi-finished products, increased to 383,507 tonnes in October, up from September's 380,526 tonnes in September and a sharp gain of 40.2 percent from a year earlier, data from the General Administration of Customs showed on Thursday.
Chinese demand brings new players into iron ore
TIANJIN, China, Nov 9 (Reuters) - China's growing demand for alternative sources of iron ore will encourage new entrants into the sector even if prices are driven down further by a flood of new supplies, the head of producer London Mining Plc told Reuters.
The three dominant global suppliers -- Vale , Rio Tinto and BHP Billiton -- are currently expanding capacity rapidly, which some fear could force prices down and drive some smaller rivals out of business.
China Oct daily steel output lowest since Dec 2010
BEIJING, Nov 9 (Reuters) - China's daily crude steel output in October fell to its lowest level since December 2010 as mills across the country closed for repairs in an attempt to head off a collapse in demand.
China produced 54.67 million tonnes of crude steel in October, down 3.58 percent compared to September, figures from the country's statistics bureau showed on Wednesday.
China's Oct iron ore imports lowest since Feb
SHANGHAI, Nov 10 (Reuters) - China's iron ore imports fell to 49.94 million tonnes in October, the lowest monthly volume since February, China's customs data showed, as steel mills in the world's largest consumer suspended buying amid sagging iron ore prices.
The imports fell 17.5 percent from 60.57 million tonnes in the previous month, taking total imports over the first 10 months to 557.93 million tonnes, up 10.9 percent from the same period last year.
Indonesia's refined tin exports drop 38 pct in Oct y/y-govt
JAKARTA, Nov 10 (Reuters) - Indonesia's refined tin exports slumped 38 percent in October from a year ago to 5,441.58 tonnes, after smelters imposed a shipment ban from the world's top exporter, a trade ministry official said on Thursday.
Indonesian refined tin exports for January to October were 78,714.96 tonnes, the data added.
Peru region gives Freeport, workers wage deadline
LIMA, Nov 9 (Reuters) - The regional government of Arequipa has given striking workers and Peru's No. 3 copper mine Cerro Verde five days to end a six-week-old conflict before calling on the central government to resolve it, a labor relations official said on Wednesday.
Regional authorities met with representatives of Cerro Verde, which produces 2 percent of the world's copper and is controlled by Freeport-McMoRan , and union members on Wednesday to initiate a new round of talks.
Alcoa on way to meeting revenue growth goals -CEO
Nov 9 (Reuters) - Aluminum producer Alcoa Inc is well on the way to reaching its increased revenue growth targets for two of its businesses, Chief Executive Officer Klaus Kleinfeld said on Wednesday.
"On rolled products -- we set a target of adding $2.5 billion revenue to the top line by 2013," he said of the business that produces flat-rolled aluminum for the auto and aviation markets among others.
U.S. gold falls 2 pct as Italy fear spooks markets
SINGAPORE, Nov 10 (Reuters) - U.S. gold fell as much as 2 percent, as growing fears over the stability of Italy and the euro zone sank riskier assets and led to liquidation on the gold market. "The relatively modest reduction in gold compared to other commodities is encouraging," said Nick Trevethan, senior commodities strategist at ANZ.
METALS-Shanghai copper hits limit down; Italian woes weigh
SHANGHAI, Nov 10 (Reuters) - London copper futures fell to their lowest level in two weeks and Shanghai prices slid by their 6 percent limit on Thursday as a mounting debt crisis in Italy heightened fears about the global economy, fuelling a flight out of riskier assets.
Three-month copper on the London Metal Exchange fell nearly 2 percent to $7,475 a tonne by 0332 GMT, after hitting a low of $7,430.50 earlier, its weakest since Oct. 25.
PRECIOUS-U.S. gold falls 2 pct as Italy fear spooks markets
SINGAPORE, Nov 10 (Reuters) - U.S. gold fell as much as 2 percent on Thursday, as growing fears over the stability of Italy and the euro zone sank riskier assets and led to liquidation on the gold market.
The sharp falls in equities and commodities forced some investors to sell their profitable gold positions to cover losses elsewhere.
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