ADR Report-Down following U.S. jobs data, crude slump
NEW YORK, Jan 9 (Reuters) - Overseas shares traded in the United States were lower on Friday, hurt after U.S. payroll data for December suggested that the economic recession would be long and deep.
Earlier, the data showed that employers cut 524,000 jobs in December. Though analysts had expected more cuts, the number increased the unemployment rate to 7.2 percent, the highest level in about 16 years. Also weighing on markets was a weak outlook by Chevron (CVX.N) and the continuing fallout of a fraud scandal at Satyam Computer (SAY.N).
The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) .BKADR was down 2.3 percent to 103.07 while the 30-share Dow Jones industrial average .DJI fell 1.1 percent to 8,648.88.
The Bank of New York Mellon's index of leading Asian ADRs .BKAS fell 2 percent to 94.93. In Asia, shares generally ended lower. The Hang Seng Index .HSI erased early gains to close down 34.47 points ahead of the payroll data. The index fell 4.4 percent in the week. [ID:nHKG65788]
Among Asian ADRs, tech stocks were among the big losers, with semiconductor stocks taking heavy losses. In Taiwan, Silicon Motion (SIMO.O) fell 2.9 percent to $2.71, Silicon Precision (SPIL.O) was off 5.6 percent to $4.40 and Advanced Semiconductor (ASX.N) lost 3.8 percent to $1.76.
The Bank of New York Mellon's index of leading European ADRs .BKEUR was down 2.6 percent to 101.32 while the FTSEurofirst 300 .FTEU3 index of top European shares ended down 4 percent at 866.95 after the U.S. data. [ID:nL9411471]
Among European ADRs, oil companies slid after Chevron's warning and a fall in February crude futures. The payroll data weighed on the contract, which fell 3.5 percent to $40.27 a barrel as investors bet that a recession would hurt demand. Britian's BP Plc (BP.N) slid 3.3 percent to $47.19 while BHP Billiton (BBL.N) was off 2.2 percent to $39.38.
Receipts with the Bank of New York Mellon's index of leading Latin American ADRs .BKLA fell 0.4 percent to 217. In Brazil, markets ended higher on strength in energy stocks, which rose despite the fall in crude oil. Argentina's benchmark MerVal index .MERV closed 2.2 percent higher at 1,192.44, boosted by Tenaris (TENA.BA), which gained 4.6 percent. [ID:nN08546351]
Among Latin American ADRs, however, the trend was reversed as crude oil weighed on companies. Tenaris (TS.N) fell 6.3 percent to $22.48 on the New York Stock Exchange.
In Brazil, telecom stocks fell after Fitch said the industry would weaken in 2009. Brasil Telecom Participacoes BRP.N was down 2.8 percent to $37.66 while Brasil Telecom (BTM.N) slid 2.8 percent to $17.19.
(Editing by Chizu Nomiyama)
