Asian Stocks, U.S. Futures Fall as Dollar, Yen Gain on Egypt

Asian stocks fell, extending the biggest global share slump in two months, and U.S. index futures declined while the yen and dollar gained on speculation Egypt’s crisis will slow the global recovery. Oil prices jumped.

The MSCI Asia Pacific Index sank 0.9 percent as of 9:07 a.m. in Tokyo, with Japan’s Nikkei 225 Stock Average posting the biggest loss among markets open for trading. Standard & Poor’s 500 Index futures dropped 0.4 percent after the gauge posted on Jan. 28 its biggest slump since August. The dollar, yen and Swiss franc gained against higher-yielding currencies while oil traded above $90 a barrel in New York on concern the unrest will spread to crude-producing parts of the Middle East.

Shares worldwide plunged on Jan. 28 by the most since November, wiping out more than $500 billion from global market values, as the escalating tensions in Egypt overshadowed U.S. data showing gross domestic product accelerated in the fourth quarter. Egyptian President Hosni Mubarak yesterday met with top military commanders as tens of thousands of protesters defied a curfew and gathered in central Cairo.

“The concerns are that we’re going to see contagion from Egypt to other parts of the Middle East,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “As long as these concerns about Egyptian political tensions persist, flight-to-safety flows are likely to favor the dollar, yen and Swiss franc.”

The MSCI World Index slipped 0.3 percent, extending the 1.4 percent drop on Jan. 28. The Nikkei 225 dropped 1.4 percent while Australia’s S&P/ASX 200 Index retreated 0.8 percent. The drop in S&P 500 futures indicate the gauge may extend its 1.8 percent loss on Jan. 28.

Egypt’s Crisis

Dubai’s DFM General Index tumbled 4.3 percent yesterday, the most since May 25. Egypt’s banks and markets stayed shut after clashes in the most populous Arab country left as many as 150 people dead.

Protestors demonstrated for a sixth day, demanding the resignation of Mubarak. The unrest was a sign that Mubarak’s appointment of the first vice president since his rise to power in 1981 and his naming of a new premier may not placate protesters.

The dollar rose to $1.3589 per euro from $1.3611 in New York last week. The yen gained to 111.63 per euro from 111.77 after earlier touching 111.28, the most since Jan. 20. The Swiss franc advanced to 1.2791 per euro from 1.2821 after rising 1.3 percent against Europe’s common currency on Jan. 28. The greenback was at 82.16 yen from 82.12.

Oil for March delivery rose 1.4 percent to $90.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract surged $3.70, or 4.3 percent, to $89.34 on Jan. 28.

Gold rose 0.6 percent, adding to a 1.7 percent gain on Jan. 28, amid demand for a haven.