RPT-WORLDWIDE MARKETS-Stocks go down, yen surge as crisis intensify

European best offers divided reply to crisis
Government bonds, Japanese yen go up with constancy top priority
Nikkei at 4-yr low, Korean won at 6-1/2-yr low US dollar

Oct 6 - Asian stocks chop down 4 % on Monday and the Japanese Yen surge to a 2-year high versus the EUR as investors doubt the sprinkled European reply to the economic crisis and the $700 billion U.S. bank post security could put off a worldwide recession.
The want for constancy troop up United States and Japanese government bond price and increased order for JPY and CHF, mainly after a statement on Friday showed the U.S. financial system shed the most jobs in September in 5 and a half years.
Oil price chop down around to around $92 per barrel, dragging behind prices of metal and grains, on outlook harm from impaired economic systems and developed economy would approximately cause them to reduce in size. JPMorgan and UBS economists have previously predicted the globe financial system would fall into a depression next year, using a universal definition of yearly growth in worldwide gross domestic produce at or beneath 2.5 %.
Saul Eslake, head economist with ANZ Bank in Sydney, does not forecast a world downturn but sees it as a mounting risk.
"The truth that a group of emerging marketplace economies runs existing account surplus insulates them to a scale from the penalty of what is going on in the worldwide economic system," he said.
"But they have genuine financial system leakages through their export and that funds they have not decoupled and not at all were."
Stock market of Japan Nikkei N225 fell to an average 3.2 % to the buck since May 2004. Sectors that gain their revenues mostly from export, such as electrical tools, moving parts and automakers, lead the index inferior.
The MSCI guide of Asia-Pacific stock outside Japan slide 4.5 % MIAPJ0000PUS to the buck since June 2006.
Hang Sang HSI from Hong Kong was losing 2.65 %, with shares of China Construction Bank 0939.HK and HSBC 0005.HK paving the means lower.
"There is just not anything optimistic out there. Figures are awful in the United States, Europe is bad, Japan is bad and China is perhaps slowing," said David Spry, investigate manager at broker FW Holst in Melbourne.

NO UNANIMITY IN EUROPE

KOSPI .KS11 from South Korea was 3.7 % down, led by shares of Samsung Electronics Company Ltd 005930.KS and POSCO 005490.KS, the world's fourth-largest steelmaker.
Korean markets have one of the hardest knock because of extensive move as overseas investors absent from apparent risk in Asia. The country's rising existing account shortfall has crooked off investors, and reports local banks were having difficulty securing foreign-currency loan added to pessimistic sentiment on the region fourth-largest financial system.
The won chop down as much as 5 % to a 6-½ year stumpy before getting better on what dealers supposed was involvement by monetary establishment.
Korea was having $198 million in net equity resources outflows previous week, comparatively light compared through prior weeks, while Taiwan-related resources, a previous hotspot for investor, saw its 17th successive week of outflows, according to Nomura.
China is the only MF marketplace in Asia that had two straight quarters of net inflows from funds, with $3.9 billion in innovative money in the third quarter, the firm said.
The USD has partially been the recipient of a move by institution and investors to slash the quantity of threat in their collection. Consequently, the EUR fell 0.9 % to $1.3635 after previously diminishing as low as $1.3610. The EUR was also losing 0.9 % at 141.50 yen, the buck since May 2006. Versus the yen, the USD dropped 1.5 % to 103.69 yen.
Europe's sprinkled responses to the economic crisis enveloping the area also weigh on investors. Germany gave blanket bank deposit assurance on Sunday to stop panic as officials clinch deals to set free Germany's Hypo Real Estate -- after an opening bailout botched and recapitalized two other banks of Europe. Divisions in how leaders from Europe think finest to move toward the economic crisis were obviously on display. Silvio Prime Minister of Italy said on Sunday that Italians would renew the thought of a universal bank rescue fund at a conference of economic ministers on Monday, only a date after the privileged of Europe's four major economies – France, Germany, Italy and Britain -- decided beside a coordinated bank release.
The 10-year Japanese government bond future 2JGBv1 was out of bed 0.6 pts at 138.27, increasing for a third day. The acquiesce on the 10-year U.S. Reserves note, which move in the conflicting direction of the value, chop down to 3.55 % after prior plummeting to 3.52 %, losing from 3.60 % late on Friday.