ADR REPORT-ADRs tumble on sovereign debt fears, Toyota

By Ryan Vlastelica

NEW YORK, Feb 4 (Reuters) - Overseas shares traded in the United States were sharply lower on Thursday as escalating fears over fiscal problems in debt-laden European countries led investors to dump riskier assets.

Toyota Motor Corp was also a drag, falling 3 percent to $71.32 after Nikkei reported the carmaker was planning to recall an estimated 270,000 units of its new-generation Prius hybrid to fix a brake problem.

The report came on the same day the automaker raised its full-year outlook, and days after a massive recall of some of Toyota's most popular vehicles, including the Camry. For details, see

The Bank of New York Mellon index of leading American Depositary Receipts (ADRs) shed 4.1 percent, while the U.S. benchmark S&P 500 index dropped 2.6 percent.

U.S. markets were also pressured by an unexpected increase in weekly jobless claims and disappointing quarterly results from MasterCard Inc.

The Bank of New York Mellon index of leading Asian ADRs sank 3.6 percent. In Asia, shares in Hong Kong and China weakened, as mainland banks succumbed to profit-taking, and investors sold Hong Kong-listed Chinese lenders after the investment arm of China's sovereign wealth fund denied a report it would buy new shares from the country's top lenders.

While Toyota was one of the most active ADRs, Sony Corp edged 0.4 percent higher to $35.09 after it raised its outlook and posted its first quarterly profit in five quarters. Hitachi Ltd fell 1.8 percent to $33.77 after reporting results. and

The Bank of New York Mellon index of leading European ADRs dropped 4.5 percent, while the FTSEurofirst 300 index of top shares ended 2.8 percent lower on concerns about the problems in the euro zone countries.

Investors sold off stocks in Portugal, Spain and Greece and the euro dropped over the fiscal problems.

The uncertainty weighed on banks, with Barclays Plc down 8.4 percent to $17.25, and HSBC Holdings Plc off 4.7 percent to $51.87.

Deutsche Bank lost 5.6 percent to $60.52 despite reporting a fourth-quarter profit that beat expectations, helped by a tax gain.

Receipts with the Bank of New York Mellon index of leading Latin American ADRs fell 5.1 percent, while Brazil's Bovespa index shed 4.6 percent.

Brazil's Banco Bradesco sank 4.6 percent to $16.64, while Argentina's Banco Marco SA dropped 5.5 percent to $26.10.

(Editing by Jeffrey Benkoe) Keywords: MARKETS STOCKS ADRS ([e-mail]; Tel: [phone]; Reuters Messaging: [e-mail]@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.