SINGAPORE (MarketWatch) -- Asian stocks markets were sharply lower Friday, dragged by heavy losses on Wall Street. Japanese automakers were hit by weak U.S. sales data and the strong yen. "It's not looking pretty," said IG Markets institutional dealer, Chris Weston. "I think this is the breather people were looking for." Japan's Nikkei average hit a two- month closing low on Friday after data stirred worries that the U.S. economic recovery may be losing momentum and as a rise in the yen hits exporters such as Tokyo Electron. The Nikkei fell 2.5 percent or 246.77 points to 9,731.87 .N225, its lowest close since July 22. The average slid 5.2 percent on the week for its biggest weekly drop in about three months. The broader Topix dropped 2.4 percent to 874.67 on Friday.. Hong Kong stocks began the fourth quarter on a dismal note, with shares hitting a three-week low on Friday as disappointing U.S. manufacturing and jobless claims data cast further doubt on the strength of economic recovery. The benchmark index .HSI fell 2.77 percent or 579.76 points to 20,375.49, its biggest one-day percentage fall since Aug. 17. European shares hit a four-week low on Friday, extending the previous day's sharp losses, with investors anxious before key U.S. jobs figures after data this week raised doubt about the strength of economic recovery. The FTSEurofirst 300 was down 1.2 percent at 970.14 points, after losing 1.6 percent on Thursday to a three-week closing low. The index, which has just posted its best quarterly gain in nearly 10 years, was set for a third day of losses. "There is a lot of negative in the background, which suggests you don't want to be complacent about this being a short-term correction," said Geoff Wilkinson, head of investment research at Mint, in London. "Clearly people are buying bonds, we have got through the key 3.3 percent yield level in U.S. 10-year (Treasury), and people are buying yen.""Nonfarm payroll employment continued to decline in September (-263,K), the unemployment rate (9.8 %) continued to trend up, the U.S. Bureau of Labor Statistics reported today. The largest job losses were in construction, manufacturing, retail trade, and government."
(ACTUALS)
T. W. Merryman
Managing Director
Interconti, Limited
(Market Research Analysts)
Chicago, IL 60604
e: intercon@intercontilimited.com
w: www.intercontilimited.com


