Market News

The frenetic activity of the government of Japanese Prime Minister Shinzo Abe has prompted optimism that Japan can reverse its economic drift. But the activity around 'Abenomics' shouldn't be mistaken for achievement, writes Satyajit Das.

Asian stocks fall as Chinese manufacturing activity deteriorates further in June, adding to the selling pressure after the Federal Reserve signals it may wind down its bond purchases if the U.S. economy continues to improve.

China's manufacturing activity was slowing further in June, according to HSBC's preliminary results from its monthly survey, which hit a nine-month low.

LOS ANGELES (MarketWatch) -- China's manufacturing sector has slowed further in June, according to HSBC's preliminary results from its monthly survey, released Thursday. The "flash" version of HSBC manufacturing Purchasing Managers' Index fell to a nine-month low of 48.3, down from May's final reading of 49.2. A reading below 50 indicates contraction. The subindex measuring output swung from expansionary territory to an eight-month low of 48.8, while those for overall new orders and for new export orders both showed an accelerating decline. Among the sharpest market reactions to the data was seen in the Australian dollar , which is very sensitive to the economic outlook in Australia's top trading partner. It fell to 92.45 U.S. cents from 92.82 U.S. cents ahead of the release.

HONG KONG (MarketWatch) -- Hong Kong stocks tumbled early Thursday after the Federal Reserve indicated plans to scale back its bond purchases, with worries about the health of the Chinese economy also weighing on sentiment. The Hang Seng Index sank 1.7% and the Hang Seng China Enterprises Index tumbled 2.2%, with markets looking ahead to HSBC's preliminary result of a survey on Chinese manufacturing sector. The Shanghai Composite lost 0.7%, dropping further after ending Wednesday's session at a six-month low, amid lingering worries over a recent rise in interbank interest rates. Losses in Hong Kong were led by the property sector, with China Overseas Land & Investment Ltd. losing 3.5% and Henderson Land Development Co. shedding 2.7%. Also weighing on the market, heavyweight China Construction Bank Corp. dropped 2.6% ahead of the HSBC data.

As president Obama offered the clearest signal yet this week that Ben Bernanke won't continue as Fed chairman after January, here's a look at some of the likeliest candidates to take over U.S. monetary policy.

LOS ANGELES (MarketWatch) -- Australian stocks fell early Thursday, declining after Wall Street slid following indication from the U.S. Federal Reserve that . The S&P/ASX 200 index stumbled 1.4% to 4,795.30, with banking issues, which offer high-yield dividends, rattled as the Australian dollar [s:CUR_audusd] was knocked below 93 U.S. cents. Shares of Westpac Banking Corp. lost 2.4%, and shares of Commonwealth Bank of Australia and Macquarie Group Ltd. dropped more than 2% each. Mining stocks suffered as prices for gold and other metals skidded lower after the Fed's announcement. Fortescue Metals Group Ltd. was off 3.7%, gold miner Newcrest Mining Ltd. shares gave up 1.6% and BHP Billiton Ltd. moved down 1.8%. The benchmark S&P/ASX 200 was facing its third consecutive loss.

HONG KONG (MarketWatch) -- Japanese stocks fell early Thursday after the Federal Reserve signaled an intention to scale down its bond purchases, although a weakened yen helped support the market. The Nikkei Stock Average gave up 1% to 13,115.02 and the broader Topix shed 0.7% to 1,098.54, despite sharper losses overnight on Wall Street. Real-estate stocks led the drop, with Sumitomo Realty & Development Co. losing 3.3% and Mitsubishi Estate Co. dropping 2.4%. Shares of Nikon Corp. fell 2.4% and Fast Retailing Co. gave up 2.1%. But some automobile exporters inched up as the U.S. dollar jumped along with a rally in Treasury yields after the Fed decision. Shares of Honda Motor Co. added 0.3% and Mazda Motor Corp. climbed 1.6%.

LOS ANGELES (MarketWatch) -- James Gandolfini, best known for his role of mob boss Tony Soprano in HBO's "The Sopranos," died of a heart attack in Italy, according to media reports Wednesday. Gandolfini, 51, was recently seen in the 2012 film "Zero Dark Thirty," about the hunt for Osama bin Laden.

U.S. stocks fall sharply on Wednesday as Federal Reserve Chairman Ben Bernanke repeats that any reduction in the central bank's stimulus moves depends on the outlook for the economy.