Euro Stocks, US Futures Rise, Asia Dips

Big exporters still trembling over possible US slowdown

By Sam Gale Rosen, Newser Staff

Posted Aug 29, 2007 7:44 AM CDT

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Euro Stocks, US Futures Rise, Asia Dips — A pedestrian passes an electric stock board in Tokyo, Wednesday, Aug. 29, 2007. Japan's benchmark Nikkei 225 stock index plunged 2.52 percent Wednesday morning after the Dow Jones fell 280 points overnight on Wall Street. The Nikkei was 15,876.60 points, down 410,89 points, or 2.52 percent, shortly... (Associated Press)

European stocks and US futures advanced overnight, as traders waxed optimistic that the credit crisis won't spread to affect the broader economy. But Asian markets are more concerned about the general prospect of a US slowdown—which could hit Asia's export-heavy economy hard.

The Stoxx 600 was up .3%, while the Nikkei was off 1.7%, and the Yen lost some of its recent steam, falling to over 114 to the dollar. "Things may not be as bad as they seem as the crisis so far is a question of liquidity not solvency,'' says an Edinburgh investment manager. In Asia, things don't look so rosy. "The market is suffering from a trust problem, it's a lack of confidence." says an Asian equity expert. (More Asian markets stories.)

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