ADR Report-ADRs fall as banks drag and recovery hopes fade

By Ryan Vlastelica

NEW YORK, May 21 (Reuters) - Overseas shares traded in the United States were lower on Thursday, following the release of economic data in the United States, that added to doubts that the economy would recover quickly.

The Bank of New York Mellon's index of leading American Depositary Receipts (ADRs) fell 1.4 percent to 108.32 while the U.S. benchmark S&P 500 index .SPX dropped 2 percent to 885.52.

In the U.S., data from the Labor Department showed that ongoing jobless claims rose to a new record, while the Philadelphia Fed's survey of manufacturing conditions for the U.S. mid-Atlantic region contracted in May for the eighth straight month. [ID:nN21290139]

The Bank of New York Mellon's index of leading Asian ADRs sank 2 percent to 106.23. In Asia, shares ended lower, with Hong Kong stocks dropping 1.6 percent as confidence over a global recovery weakened. [ID:nHKG8647]

Asian financial stocks fell on U.S. exchanges, dropping on investor pessimism and as some banks announced stock issuances in order to raise capital. [ID:nN20539974]

China Finance Online (JRJC.O: Quote, Profile, Research) sank 5 percent to $11.93 while Korea's Woori Finance (WF.N: Quote, Profile, Research) was down 1.9 percent to $28.82.

The Bank of New York Mellon's index of leading European ADRs dropped 1.1 percent to 101.07 while the FTSEurofirst 300 index of top shares ended down 2.1 percent to 857.52 after a ratings cut in the UK's economic outlook. [ID:nLL329172]

Among European ADRs, financial stocks continued to weigh heavily, with HSBC Holding (HBC.N: Quote, Profile, Research) down 2.4 percent to $42.64, the Royal Bank of Scotland (RBS.N: Quote, Profile, Research) off 3.4 percent to $12.70 and Lloyd's Banking Group (LYG.N: Quote, Profile, Research) losing 3.9 percent to trade at $5.39.