Stock Market

International investors have been unnerved by the recent plunge in China's stock market, fearing it signaled that a global recovery may be stalling, but many analysts say those worries are overblown.

Federal Reserve Chairman Ben Bernanke said what investors wanted to hear, that the economy is indeed on the verge of recovery, and they responded with a rally that sent the major indexes to new highs for the year.

Is it game over for the recession? Or will consumers stay in hibernation?

A friend of Bernard Madoff accused of helping fund billions of dollars to the imprisoned swindler asked judges to dismiss charges against him by the U.S. Securities and Exchange Commission and the trustee of Madoff's investment advisory firm.

Dow Jones & Co Inc has been talking to potential buyers about the sale of its stock market index business, including the Dow Jones industrial average (.DJI), the company's Wall Street Journal reported on its website.

Last year, as the gravest financial crisis since the Great Depression shook the banking system, Ben Bernanke seemed nearly as beleaguered as the institutions themselves.

The Federal Reserve chief had initially underestimated the crisis — and then seemed to inject new risk by unleashing breathtaking sums of money to fight it. Now, a strengthening economy is raising Bernanke's standing just as President Barack Obama must decide whether to reappoint him.

Hong Kong share prices tumbled to close 3.62 percent lower on Monday, following a slump on Wall Street at the end of last week on the release of weak US economic news, dealers said. The benchmark Hang Seng Index closed 755.68 points lower at 20,137.65 on turnover worth 74.74 billion Hong Kong dollars (9.64 billion US).

Malaysian shares closed down 1.67 percent on Monday due to profit-taking in consumer, construction and finance related stocks, dealers said. The Kuala Lumpur Composite Index shed 19.52 points to 1,169.05. Losers led gainers 701 to 93. Volume was moderate with 1.02 billion shares worth 1.44 billion ringgit (411 dollars) traded.

Singapore shares closed 3.25 percent lower on Monday in line with other regional stocks after falling US consumer confidence reignited concerns over the strength of an economic recovery. The blue chip Straits Times Index tumbled 85.53 points to 2,545.98 on volume of 2.34 billion shares worth 1.73 billion Singapore dollars (1.19 billion US).

Britain's top share index fell 1.5 percent by the close on Monday with heavyweight mining, oil and banking stocks leading the losers, as global markets retracted amid concerns over the pace of global recovery. The FTSE 100 closed 68.96 points lower at 4,645.01, extending losses from Friday when the index shed 0.9 percent and marking its biggest one day percentage loss since July 2.

Taiwan stocks closed 1.95 percent lower on Monday, as weak consumer data from the United States raised doubts about the strength of economic recovery, pressuring export-reliant technology stocks such as Hon Hai. The main TAIEX share index finished 137.71 points lower at 6,931.80, logging its worst daily percentage fall in five weeks. Turnover was light at T$96 billion ($2.9 billion), compared with T$125 billion on Friday.

European shares fell to their lowest close in more than two weeks on Monday, as investors took profits, worrying that a recent rally was not supported by economic data. The FTSEurofirst 300 index of top European shares fell 2 percent to 921.96 points, the lowest close since July 29. The index posted its biggest one-day percentage drop since July 2.

Japan's Nikkei average fell 3.1 percent on Monday in its biggest one-day fall in nearly five months, on profit-taking sparked by worries the surge in stocks had run ahead of economic recovery. An unexpectedly weak reading on US consumer confidence and falls in US share prices late last week, as well as declines in oil prices and Chinese equities, raised worries that risky assets were due for a pull-back.

Malaysian Prime Minister Najib Razak will relax rules for foreign investment in a speech on Tuesday in a bid to attract money into this Southeast Asian country as it battles a recession caused by falling demand for its exports. The Malaysian Insider website (www.themalaysianinsider.com), quoting unidentified sources, said Najib will announce major changes to the Foreign Investment Committee (FIC) that will include liberalising property ownership by foreigners.

Eurozone economic sentiment improved more than expected in June, data showed on Monday, as the European Commission predicted the worst could be over for the 16-country currency area. A monthly survey by the Commission, the European Union's executive arm, showed economic sentiment in the eurozone rose to 73.3 points in June from 70.2 in May, the third improvement from a trough of 64.6 points in March.

The third US investigation in 10 days which could lead to duties on Chinese steel imports is a shocking sign of trade protectionism, China's commerce ministry said on Monday. The US Department of Commerce on June 26 opened a probe into whether China has dumped or subsidised wire decking sold in the US market, following the launch of similar investigations into wire strand and steel grating the previous week, the Chinese ministry said.

A majority of the US International Trade Commission recommended on Monday that President Barack Obama impose additional duties for three years on imports of low-cost Chinese tires the panel says are harming US industry.

Japanese industrial output jumped 5.9 percent in May as car and electronics production pulled out of a deep slump, although an inventory build-up in some sectors suggested the rebound would soon lose momentum. Manufacturers forecast output growth to slow to 3.1 percent in June and to just 0.9 percent in July amid an absence of a convincing global recovery.

Guilin Sanjin Pharmaceutical, the first firm to launch an initial public offering in China since September, started taking orders on Monday, expecting the offer to be heavily oversubscribed, dealers said. Analysts said the retail tranche of the IPO drew heavy demand from the early hours as investors believe Sanjin will shine on its debut due to ample liquidity in the market.

Real estate company SRE Group aims to raise a total of about $145 million via a bond issue and share sale, according to two separate term sheets. SRE plans to sell 550 million yuan ($80.48 million) worth of US dollar convertible bonds due in 2014, raising capital to repay debt. Credit Suisse and Deutsche Bank are the joint book runners, a term sheet said.