Shares to ease as euro-zone woes return

WELLINGTON (BestGrowthStock) – Asian stocks are set to weaken on Monday after a downgrade of Spain’s credit rating renewed fears that the euro zone’s fiscal problems could derail recovery of the global economy.

The main U.S. indices capped their worst month since early 2009 by closing as much as 1.2 percent lower after Fitch downgraded Spain one notch, saying the country’s recovery would be muted because of austerity measures.

The downgrade pushed Wall St lower. U.S. stocks (Read more about the stock market today. ) had already been under pressure from unexpectedly flat consumer-spending data and slower growth in U.S. Midwest business activity.

Profit taking was also noted ahead of the long weekend. U.S. markets are closed Monday for the Memorial Day holiday.

Asian stocks listed on Wall Street (.BKAS: ) were 1.8 percent lower.

British and European markets closed before the Spain downgrade. They had ended marginally lower with the escalating costs of the Gulf of Mexico oil leak weighing on oil giant BP (BP.L: ) and lower crude prices hurting energy stocks.

British markets are also closed on Monday for a holiday.

The euro fell (Read more about the trembling euro. ) across the board after the Spanish downgrade rekindled fears about the euro zone’s fiscal woes. The yen gained as much as 0.9 percent against the euro and was fractionally higher against the U.S. dollar.

The higher yen will likely weigh on Japanese stocks, with Nikkei futures traded in Chicago 150 points below the last closing level in Osaka.

Australian shares are set to fall, with share price index futures down 42 points to 4,424, a 33.5 point discount to the underlying S&P/ASX 200 (.AXJO: ) index.

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(Reporting by Gyles Beckford;)

Shares to ease as euro-zone woes return