(Adds markets, quote, updates prices)
By Louise Heavens
SINGAPORE, Feb 22 (Reuters) - Fresh signs that the U.S.
economy may be in recession sent Asian stocks lower on Friday,
with Shanghai shedding more than 4 percent, as investors took
shelter in the relative safety of government debt.
European stock markets are expected to follow suit, although
with more modest losses. Spread betters in London are calling
Britain's FTSE 100 <> down 0.4 percent, Germany's Dax
<> down 0.7 percent and France's Cac-40 <> 0.8
percent lower.
Concern about the fading U.S. economy dragged crude oil
prices further from a record high above $101 a barrel. Platinum
was a bright spot, soaring to yet another record high.
The Philadelphia Federal Reserve's business activity index
for February was at its lowest level since 2001, providing more
evidencethat the U.S. economy may already be in recession.
[]
"Whether the U.S. is in recession or not, I'll leave it to
the economists, but we are going to have an extended downturn
simply because the U.S. debt market is in such a difficult
state," said Neale Goldston-Morris, head of strategy at
Macquarie Equities.
"The market is very edgy at the moment and this will
continue for an extended period of time."
Japan's benchmark Nikkei <> shed 1.4 percent, handing
back most of Thursday's gain, while MSCI's index of other Asian
stocks <.MIAPJ0000PUS> fell 0.9 percent by 0612 GMT. It is 25
percent below its November peak.
For months investors have feared that the United States is
sliding into recession and any equity rally has been quickly
sapped by bad news -- often yet another credit-related
write-down by a big bank.
Only this week Credit Suisse <CSGN.VX> revealed a $2.85
billion write-down and Societe Generale <SOGN.PA>, rocked by a
rogue trading scandal, said there may be more to come.
Stock markets across Asia fell, with Australia <>,
South Korea <>, Singapore <.FTSTI> and Hong Kong <>
falling between 0.4 percent and 1.8 percent.
Shanghai's Composite fell 4.3 percent, going below a level
that many analysts regard as important technical support.
CHOPPY AHEAD
"It's meaningless to debate whether a recession is already
in the United States or not," said Lee Kyung-soo, an analyst at
Daewoo Securities in South Korea.
"The third quarter of 2008 could mark the start of a
recovery and stock markets may start reflecting that
expectation sometime in the second quarter. Before that, a
cycle of rises and falls will likely continue."
Oil kept falling after dropping more than $1 in the
previous session as data showing growing stockpiles added to
concerns about demand in a weaker United States.
U.S. crude for April delivery <CLc1> fell 18 cents to
$98.05 a barrel, having shed around a dollar and a half in New
York trade.
Precious metal platinum <XPT=>, used in auto catalysts and
jewellery, hit another record high on supply concerns, changing
hands at $2,191 an ounce. Gold <XAU=> was trading at around
$948 an ounce.
With the weak U.S. data bolstering the view that the
Federal Reserve will cut interest rates again, the dollar
hovered near a two-week low against the euro <EUR=> at $1.481.
Lower rates would erode the currency's appeal to investors
seeking high yields.
In the Japanese bond market March 10-year JGB futures
<2JGBv1> rose 0.41 point. The 10-year yield fell 3.5 basis
points to 1.450 percent <JP10YTN=JBTC>.
(Editing by Alan Raybould)
