Shares Sink in Asia, Europe, US

Asian markets tumbled Wednesday and shares fell across Europe as crude oil flirted with $100 per barrel and U.S. investors found little comfort in economic indicators before the Thanksgiving holiday.

The Dow Jones Industrial Average slipped 118 points to 12,891.54, while the Standard & Poor's 500 Index fell 11 points to 1,428.76.

Hong Kong shares fell sharply and Japan's benchmark index falling to its lowest level in 16 months.

In Europe, major markets were also lower.

France's CAC-40 fell 2.3 percent, London's FTSE-100 Index fell 2.5 percent, and Germany's DAX dropped 1.5 percent.

Investors in Tokyo dumped exporters' shares like Honda Motor Co. and Matsushita Electric Industrial Co. when the dollar fell to a two-year low against the yen.

The Nikkei 225 stock index sank 373.86 points, or 2.46 percent, to close at 14,837.66 points - its lowest point since July 24, 2006. Since the start of November, the index has dropped 13.1 percent.

A report Wednesday indicated the U.S. economy's slowdown could accelerate in the coming months due to rising costs and the sinking housing market. The Conference Board said its index of leading indicators fell by 0.5 percent in October to a two-year low, after ticking up by 0.1 percent in September and falling by 0.9 percent in August.

Last month's decline was larger than anticipated, as economists surveyed by Thomson/IFR had predicted, on average, a drop of 0.3 percent.

The dollar, meanwhile, fell as low as 108.89 yen, its lowest since Sept. 5, 2005. A strong yen erodes exporters' overseas earnings and makes their products less competitive abroad.

Crude oil prices rose above a record $99 per barrel Wednesday as worries about inadequate winter supplies in the Northern Hemisphere and news of refinery problems stoked bullish sentiment.

Light, sweet crude for January delivery rose as high as $99.29 a barrel in electronic trading after the New York Mercantile Exchange closed, breaking the previous intraday record of $98.62 set last week. The contract was trading at $98.04 a barrel - up 1 cent on Tuesday's close - at midday in Europe. Brent crude for January delivery was little changed at $95.88.

Investors sold off shares of European exporters to the U.S., like Philips Electronics NV and Porsche AG. Porsche shares fell 5 percent to $1,958.21.

In Asia and Europe, investors remained bearish over the murky outlook for the U.S. economy, an important export market, amid problems in the housing and banking industries. Wild swings Tuesday in the Dow Jones industrial average - which ultimately closed flat - fanned that anxiety.

"That seems to reflect unsettled prospects for the market," said Masayoshi Okamoto, general manager at Jujiya Securities in Tokyo.

Sompo Japan Insurance Inc. plunged 16 percent on worries about its exposure to U.S. mortgage markets.

Asian markets have also been volatile recently. On Tuesday, key indices in Tokyo, Hong Kong and Singapore all bounced back after plunging early, but Wednesday, they resumed their recent slide.

"It's hard to predict at this moment when the market will bottom out," said Castor Pang, a strategist at Sun Hung Kai & Co. Ltd. in Hong Kong. "The local market will continue to consolidate as investors' risk appetite is low, weighed down by worries about the outlook of the U.S. economy."

Hong Kong's benchmark Hang Seng index tumbled 1,153.02 points, or 4.15 percent, to 26,618.19, with only two of the index's 40 companies bucking the downward trend. Property stocks led the decline, with the subindex sliding 4.9 percent.

Another loser was China Mobile, which sank 4 percent to HK$129.00.

On the Chinese mainland, stocks fell on renewed fears of measures to cool surging property prices. The benchmark Shanghai Composite Index fell 1.5 percent to 5,214.23 in light trading.

"In the absence of positive news, investors were left to wonder what kind of macroeconomic tightening is in store," Shenyin & Wanguo Securities analyst Xu Yan said.

Banks such as Industrial & Commercial Bank of China and Bank of China also weakened on worries over a possible interest rate hike.

In Seoul, the Korea Composite Stock Price Index fell 65.25 points, or 3.5 percent, to 1,806.99, to a three-month low. Samsung Electronics Co., South Korea's biggest corporation, fell 3 percent to 515,000 won.