•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   

US investors were in a selling mood on Monday as the passage of sweeping health care reform and uncertainty over Greek debt crisis revived their risk aversion.

European leaders sent out conflicting signals over aid to Greece over the weekend. The surprise interest rate hike from India also heightened worries about global fiscal tightening.

The spotlight was on shares in the pharmaceutical, health care and insurance sectors after the US House of Representatives approved a health care overhaul bill, expanding insurance coverage to nearly all Americans.

In corporate earnings mews, Tiffany and Company posted a fourth-quarter profit below expectations and forecast full-year earnings above estimates.

Elsewhere, stock markets fell Monday as worries about Greece’s debt crisis and India’s sudden interest rate hike rattled investors.

Major Asian indexes were down as much as 2 percent and the main Europe markets were off by as much as a full percent. Oil prices fell toward $80 a barrel. The dollar was little changed.

Uncertainty over Greece’s ability to pay its massive debts has weighed on investors in recent months. But with other countries that use the euro currency reluctant to come to Greece’s aid so far, a solution has been out of reach. Over the weekend, Germany’s chancellor squelched talk a bailout might be discussed at this week’s European summit.

Further weighing on investors was an unexpected decision by India’s central bank to raise interest rates. The Reserve Bank of India hiked key lending rates late Friday by a quarter-percentage point in an attempt to cool high inflation amid a faster-than-expected economic rebound. The move unnerved investors concerned growth and asset prices could sink once governments start winding down stimulus.

Hong Kong’s Hang Seng plummeted 437.57 points, or 2.1 percent, to 20,933.25 and South Korea’s main benchmark lost 13.44, or 0.8 percent, to 1,672.67. Japanese markets were closed for a national holiday. Australia’s market fell 0.9 percent and India’s Sensex dropped 0.7 percent. Shanghai’s benchmark added 0.2 percent in back-and-forth trade.

Tim Condon, head of Asia research for ING Financial Markets in Singapore, said investor confidence in the region was fragile. There were expectations last year’s bull run would continue into 2010, but anxiety over how China would unwind its economic supports, mounting government debt and other uncertainties are holding traders back.

 

JG, AP, Reuters