ADR Report-Foreign shares tumble on U.S. data; Femsa jumps

NEW YORK Oct 1 (Reuters) - Overseas shares traded in the United States tumbled on Thursday as weaker-than-anticipated jobs and manufacturing data triggered anxiety about the strength of the economic recovery.

A stronger U.S. dollar further encouraged selling, as greenback-priced foreign equities become more expensive.

But shares of Mexican beverages company Fomento Mexicano soared on a Wall Street Journal report it was in discussions to merge its beer operations with a larger rival.

Declines broadly spread among sectors and regions. Among volume leaders were New York-traded shares of chipmaker Taiwan Semiconductor Manufacturing Co (TSM.N), down 3.7 percent to $10.55, Finnish phone maker Nokia Corp (NOK.N), down 3.7 percent to $14.08 and Brazilian miner Vale SA (VALE.N), off 3.6 percent to $22.30.

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) .BKADR slid 3 percent while the U.S. benchmark S&P 500 index .SPX lost 2.6 percent.

The Institute for Supply Management's manufacturing reading fell to 52.6 in September, below economists' forecast of 54.0. Factory data and worse-than-expected jobless claims overshadowed more positive reports on spending and pending home sales. For details see [ID:nN01395512].

The downbeat data lifted the U.S. dollar's safe-haven appeal and the greenback rose against the euro and a basket of currencies. The dollar index .DXY gained 0.7 percent.

On a geographical breakdown, ADRs of leading Latin American companies .BKLA, down 2.4 percent, were the least hit. Mexican beverages company Fomento Mexicano (FMX.N) shot up 16.7 percent to $44.40 after the Wall Street Journal reported a possible merger of Femsa's beer operations with a larger rival. [ID:nN01288456].

ADRs of Asian companies were dragged by regional bellwether PetroChina Co Ltd (PTR.N), down 3.4 percent to $109.93, and Tokyo-based Mitsubishi UFJ Financial Group (MTU.N), down 7.1 percent to $4.96.

Mitsubishi UFJ and other banking shares slid after the Nikkei business daily reported a proposed debt relief plan for small and mid-size businesses which could hold loan repayments for around three years. [ID:nT182926].

The BoNY index of leading Asian ADRs .BKAS tumbled 3.2 percent.

Declines in ADRs of European companies were led by banks and miners, with BHP Billiton plc (BHP.N), ArcelorMittal (MT.N), Deutsche Bank AG (DB.N) and UBS AG (UBS.N) down between 4.7 and 5.8 percent.

The Bank of New York Mellon index of leading European ADRs .BKEUR tumbled 2.9 percent.