Chipmakers STM, IFX lead European markets

European equities markets were lower Monday as London markets closed for their summer bank holiday.

The FTSE Eurofirst 300 was 0.56 percent lower to 1,169.17 as the Dax was down 0.72 percent to 6,296.95, the CAC-40 fell 1.01 percent to 4,355.87 and the IBEX dropped 1.48 percent to 11,327.1.

The declines came on concerns about slowdowns in regional and global economies due to the ongoing credit crisis.

Chipmakers lead both the CAC-40 and the Dax as STMicroelectronics (Euronext: STM; NYSE: STM) added 1.13 percent and Infineon (FWB: IFX; NYSE: IFX) gained 1.68 percent.

Utilities, the software sector and some carmakers saw gains, but the steel sector, banks, and airlines saw declines.

Asia-Pacific equities markets were higher Monday on last week’s declines in oil prices, with carmakers and airlines benefiting most while banks were higher on a statement from Korea Development Bank indicating that it is considering investments, including a rumored purchase of Lehman Brothers (NYSE: LEH).

In Tokyo, the Nikkei 225 added 1.68 percent to 12,878.66 while the Topix index was up 1.88 percent to 1,239.25 and the Mothers market gained 0.98 percent to 446.21.

In the automobile manufacturing sector, Toyota (TYO: 7203.T; NYSE: TM; LSE: TYT) was up 2.9 percent while Nissan (TYO: 7201) added 3.1 percent and Honda (TYO: 7267; NYSE: HMC) gained 4.4 percent, while tire maker Bridgestone (TYO: 5108) was up 4.1 percent.

Banks and brokers were also higher, while entertainment group Index Holdings (JASDAQ: 4835) jumped 16 percent on reports that it will produce animation based on superhero characters created by Marvel Entertainment (NYSE: MVL).

Elsewhere in the region, India’s Sensex was up 0.34 percent to 14,450.35 while the Shanghai Composite added 0.34 percent to 2,413.37, South Korea’s Kospi index was 0.35 percent higher to 1,502.11 and the Straits Times Index gained 0.37 percent to 2,733.45.

In Australia, the Sydney Ordinaries added 1.59 percent to 5,090.1 and the S&P/ASX200 was 1.69 percent higher to 5,014.9 while Taiwan’s Taiex was up 1.72 percent to 7i,030.72 and the Hang Seng jumped 3.5 percent to 21,104.79 in Hong Kong.

Wall Street saw declines in early afternoon trade on a bank failure in Kansas and on speculation that insurer AIG (NYSE: AIG).

The Dow Jones Industrial Average was down 1.84 percent to 11,414.5 while the Nasdaq Composite had dropped 1.92 percent to 2,368.38 and the S&P 500 was 1.76 percent lower to 1,269.45.

AIG dropped 5.2 percent on the word of possible losses in the third quarter and the rest of the sector followed it lower, also hurt by damage from Tropical Storm Fay.

Office supply retailers saw declines as consumers went other places to find low-priced back to school supplies, with Staples (NAS: SPLS) down 2.1 percent as Office Depot (NYSE: ODP) fell 3.2 percent and Office Max (NYSE: OMX) dropped 5.2 percent.

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