Asian shares slide as Wall Street fall, Spain attack weigh
Asian stocks sank Friday as global investor sentiment was battered by big losses on Wall Street amid U.S. political turmoil and a deadly van attack in Spain.
KEEPING SCORE: Japan's benchmark Nikkei 225 index lost 1 percent to 19,505.23 and South Korea's Kospi shed 0.2 percent to 2,356.58. Hong Kong's Hang Seng sank 0.7 percent to 27,155.03, clawing back some earlier losses, and the Shanghai Composite index lost 0.2 percent to 3,260.88. Australia's ASX 200 fell 0.7 percent to 5,738.70. Benchmarks in Taiwan and Southeast Asia also lost ground
BARCELONA ATTACK: Investors shied away from riskier investments following the latest attack to hit Europe. Police in Spain's Catalonia region said they killed five suspects after a van swerved into pedestrians in downtown Barcelona, killing 13 and injuring 100. Police called it a terror attack and the Islamic State group claimed responsibility for it.
EARNINGS JITTERS: U.S. stocks had their second worst day this year as some big companies provided disappointing forecasts in their latest quarterly earnings reports, darkening the outlook for the world's No. 1 economy. Network equipment maker Cisco Systems and data storage company NetApp both offered poor sales forecasts for the current quarter and Victoria's Secret parent L Brands cut its annual profit forecast on weakening sales.
TRUMP TROUBLE: More turmoil at the White House added to investor pessimism. President Donald Trump abandoned his plans to form an infrastructure advisory council, a day after the administration said would close down two other advisory councils made up primarily of business leaders. The White House was also forced to issue a statement dispelling swirling rumors that Gary Cohn, head of the National Economic Council, was stepping down, saying they were "100 percent false."
MARKET VIEW: "The White House drama shows little sign of easing," said Stephen Innes, head of Asia trading at OANDA. "With U.S. investors' nerves fraying at the thought of a discombobulated White House — the face of the nation — investor risk appetite could remain fractured for some time."
WALL STREET: U.S. benchmarks had their biggest loss since May. The Standard & Poor's 500 index dropped 1.5 percent to 2,430.01, its lowest close since July 11. The Dow Jones industrial average tumbled 1.2 percent to 21,750.73. The Nasdaq composite sank 1.9 percent to 6,221.91.
ENERGY: Benchmark U.S. crude dipped 3 cents to $47.06 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 31 cents to settle at $47.09 a barrel on Thursday. Brent crude, used to price international oils, added shed 9 cents to $50.94 a barrel in London.
CURRENCIES: The dollar dipped to 109.40 yen from 110.55 yen in late trading Thursday. The euro rose to $1.1732 from $1.1723.