World Market Review By Nirmal Bang

BSEAsian stocks fell for a third day, led by technology and mining companies, after economist Nouriel Roubini said share prices may drop and a report showed the U. S. lost more jobs than estimated. Crude oil slid 1.2% on Oct. 2, the most in a week. A gauge of six metals, including copper and nickel, fell 2% in London, adding to the previous day's 2.8% drop.

New York University Professor Nouriel Roubini, who predicted the financial crisis, said stock and commodity markets may drop in coming months as the gradual pace of the economic recovery disappoints investors.

"Markets have gone up too much, too soon, too fast," Roubini said in an interview in Istanbul on Oct. 3. "I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V? shaped, but more like U? shaped. That might be in the fourth quarter or the first quarter of next year."

Chinese central bank official Yi Gang said the strength of lending in the country isn't a cause for concern and will stabilize, reflecting the government's reluctance to rein in economic stimulus measures. The dollar fell against the euro for a second day after Group of Seven finance chiefs refrained from calling for measures to stop the U. S. currency's decline.

The greenback also declined against 14 of its 16 major counterparts on speculation Federal Reserve officials this week will reiterate interest rates will be kept at a record low. The yen pared earlier gains against the dollar as Japanese Finance Minister Hirohisa Fujii said the government will intervene if the yen moves in a "biased direction." Japanese Finance Minister Hirohisa Fujii issued his clearest warning yet that his nation is open to intervening in the currency market even as the Group of Seven declined to criticize the tumbling dollar. "If currencies show some excessive moves in a biased direction, we will take action," Fujii said Oct. 3 in Istanbul after a meeting of G? 7 finance ministers and central bankers.

Indian market will be opening after gap of Friday holiday, when most of the world markets had fallen and same is reflected in SGX CNX Nifty. But today morning dollar index has again declined which will restrict foreign investor to withdraw fund from India. Indian Market is expected to open low but may recover partially during the day.