Asian stocks give up early gains on global woes

Tuesday, 23 August 2011 00:00 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters) - Jittery Asian stocks surrendered early gains and turned lower on Monday, adding to last week’s steep losses, while gold shot to new highs as investors worried about the sluggish U.S. economic outlook and Europe’s festering debt crisis.

Spot gold prices hit a record $1,878.39 per ounce as the shaky global outlook prompted investors to move more money into the safe haven, while oil prices tumbled on hopes Libya may resume full output soon as a six-month civil war seemed to be nearing an end.

Japan’s Nikkei 225 index was marginally lower by midday, with increasing expectations that Tokyo will intervene in forex markets to weaken the strong yen offsetting growing worries that the U.S. economy may be sliding back into a recession.

Shares elsewhere in the region as measured by the MSCI Asia Pacific ex-Japan index fell almost 1 percent after briefly edging into positive territory earlier in the session.