NEW YORK, Sept 4 Baidu Inc was a
standout in an otherwise lackluster market for overseas shares
on Tuesday after China's largest search engine said it will
invest more than $1.6 billion to set up a cloud computing
Shares of Baidu, which unveiled its mobile Internet browser
at its annual conference in Beijing, gained 2.8 percent. The
company is pushing deep into cloud computing as the heart of its
mobile strategy in order to capitalise on the booming sector.
Cloud computing is a term used to describe data storage and
processing done on the Web.
The wider market came under pressure as data showed U.S.
manufacturing shrank at the sharpest clip in more than three
years last month, more evidence the global economy is slowing as
the euro zone debt crisis continues to overhang markets.
"Many businesses are not only dealing with a moderation in
order growth, led by weakness overseas but also very little
visibility on how things will turn out economically particularly
in Europe and with the US election," said Peter Boockvar, equity
strategist and portfolio manager at Miller Tabak in New York.
The BNY Mellon index of leading American depositary receipts
fell 0.7 percent, while the Standard & Poor's 500 index
fell 0.1 percent.
Strength in Baidu was not enough to cushion the Asian ADR
index, which fell on weakness in major Chinese stocks such as
China Mobile, down 0.5 percent to $52.40 and China
Petroleum and Chemical Corp, down 3 percent to $91.38.
The BNY Mellon index of leading Asian ADRs fell 1.2
percent and the BNY Mellon index of leading Latin American ADRs
lost 1.4 percent.
Hong Kong shares on Tuesday fell to their lowest close in
over a month. Plays on the global economy were among the bigger
Strength in some defensive sectors that fare better than the
rest of the market when the economy is weak helped European
shares. Distributors and manufacturers of alcoholic drinks
Anheuser-Busch InBev and Diageo rose nearly 1.5
to 2 percent.
The BNY Mellon index of leading European ADRs fell
0.4 percent, while the FTSEurofirst 300 index of top
shares closed up 1.1 percent.