Asian stocks wobble as markets fret over US economy

0 Comments | AFP, September, 2007

TOKYO (AFP) — Asian stock markets ended mostly weaker Monday, hit by heavy losses on Wall Street after a surprise drop in US payrolls sparked fears the world's largest economy may be heading for recession, dealers said.

But the region's bourses finished well off their lows for the day, while some, such as Shanghai and Hong Kong, managed to end in positive territory.

Investors are now pinning their hopes on a Federal Reserve interest rate cut to shield the economy from the fallout from the US housing slump, dealers said.

"All eyes remain on the US where the market has already priced in a rate cut -- the question is just how much," said Macquarie Private Wealth Management private client adviser Joseph Youssef in Sydney.

Hope of a US rate cut helped the...