Global equities decline on economy concerns

Equities markets in Tokyo were at their lowest in a week on Wednesday.

The Nikkei 225 was 1.05 percent lower to 13,111.89 while the Topix index was down 1.54 percent to 1,262.9 and the Mothers market fell 2.9 percent to 590.35.

The real estate sector declined on a downgrade within the sector, while builders were down on disappointing quarterly reports.

Chipmakers and the pharmaceuticals sector also saw declines.

Credit-market problems weighted on markets in the Asia-Pacific region after a US bank warned of losses in the first quarter.

Taiwan’s Taiex was down 0.06 percent to 8,667.93 while in Australia the Sydney Ordinaries dropped 0.9 percent to 5,583.5 and the S&P/ASX200 was 0.92 percent lower to 5,520.2.

The Straits Times Index fell 1.3 percent to 3,089.72 in Singapore while the Hang Seng was down 1.35 percent to 23,984.57 and the Shanghai Composite dropped 5.5 percent to 3,413.91.

The main exception to the declines in the region was in India, where the Sensex added 1.3 percent to 15,790.51, while South Korea’s markets were closed for the day.

European equities markets were lower on the session on earnings worries as oil prices go up and the credit crisis seems to still be taking a toll, as well as ahead of interest rate decisions by the Bank of England and the European Central Bank, both due Thursday.

The FTSE Eurofirst 300 was down 0.72 percent to 1,308.92.

The Dax was 0.75 percent lower to 6,721.36 while the CAC-40 fell 0.77 percent to 4,874.97 and the IBEX dropped 1.17 percent to 13,599.

Banks and insurers were both lower on broker downgrades, while retailers, the semiconductors sector, banks, airlines, and the aerospace sector also all saw declines.

The oil sector was higher, as were some in the pharmaceuticals and telecommunications sectors.

In London, the FTSE 100 was down 0.11 percent to 5,983.9 and the FTSE 250 dropped 0.37 percent to 10,071.8.

Miners and the oil sector saw gains on higher commodities prices, while airlines fell as crude oil futures gained.

Utilities, banks, insurers, and real estate developers all were lower.

Wall Street was lower in mid-afternoon trade, hurt by oil prices that soared to a new record after US stockpiles fell and after a reduced forecast from a shipping company which cited high fuel costs as a major factor.

The Dow Jones Industrial Average was 0.6 percent lower to 12,500.4 while the Nasdaq Composite was down 0.92 percent to 2,327.06 and the S&P 500 dropped 0.62 percent to 1,357.14.

Airlines saw declines due to rising oil prices, three recent bankruptcies in the sector, and after more flights were cancelled during the day so that inspectors can carry out safety inspections.

Oil refiners saw losses on fears that higher oil prices will reduce demand after the US Energy Information Administration, reported that gasoline demand was down by 2 percent last week over the same week last year.

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