Asia markets fall
Friday, 9 November 2007
TOKYO, Nov 8 (AP): Asian markets fell Thursday after Wall Street posted its second big drop in a week as investors worried about the extent of fallout from the global credit crisis.
Japan's benchmark index sank 2.0 per cent, while the Hang Seng in Hong Kong tumbled 3.20 per cent. China's benchmark Shanghai Composite Index lost 4.90 per cent in its biggest one-day decline in four months.
Shares also fell in Australia, India, South Korea and the Philippines.
"There has been renewed concern about the US subprime loan problem amid reports that losses at US and European financial institutions are expanding, which increases uncertainty," said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.
Jitters have grown since Citigroup Inc. said Sunday it needed to take an additional US$8 billion to $11 billion in writedowns.
Additional concerns about weakness in the dollar, soaring oil prices and a record loss at General Motors Corporation on an accounting adjustment sent the Dow Jones industrial average down 360.92, or 2.64 per cent, Wednesday to 13,300.02. It was the third time in a month the blue chip index has dropped by more than 350 points.
Some investors are worried that global markets could repeat the plunge they experienced in August, when the subprime problems first came to the attention of the broader market.
"What happened in August could happen (again)," said Takeuchi.
In Japan, investors dumped financial and real estate shares such as Mizuho Financial and Mitsubishi Estate. The Nikkei 225 index fell 325.11 points, or 2.02 per cent, to close at 15,771.57 points.
A steadily strengthening yen against the dollar also hurt exporters like Toyota Motor Corporation and Sony Corporation.
In Hong Kong, the benchmark Hang Seng index dropped 948.7 points, or 3.20 per cent, to 28,760.2, with property shares falling sharply.
Analysts warned that the market, which has surged this year, could fall further.
"There's no rush to buy stocks on dips as further downside may be imminent. It's riskier to buy now," said Conita Hung, a director at Delta Asia Financial Group.
In mainland China, the markets were hurt by declines overnight in American Depositary Receipts of large Chinese traded in New York.
Japan's benchmark index sank 2.0 per cent, while the Hang Seng in Hong Kong tumbled 3.20 per cent. China's benchmark Shanghai Composite Index lost 4.90 per cent in its biggest one-day decline in four months.
Shares also fell in Australia, India, South Korea and the Philippines.
"There has been renewed concern about the US subprime loan problem amid reports that losses at US and European financial institutions are expanding, which increases uncertainty," said Koji Takeuchi, senior economist at Mizuho Research Institute in Tokyo.
Jitters have grown since Citigroup Inc. said Sunday it needed to take an additional US$8 billion to $11 billion in writedowns.
Additional concerns about weakness in the dollar, soaring oil prices and a record loss at General Motors Corporation on an accounting adjustment sent the Dow Jones industrial average down 360.92, or 2.64 per cent, Wednesday to 13,300.02. It was the third time in a month the blue chip index has dropped by more than 350 points.
Some investors are worried that global markets could repeat the plunge they experienced in August, when the subprime problems first came to the attention of the broader market.
"What happened in August could happen (again)," said Takeuchi.
In Japan, investors dumped financial and real estate shares such as Mizuho Financial and Mitsubishi Estate. The Nikkei 225 index fell 325.11 points, or 2.02 per cent, to close at 15,771.57 points.
A steadily strengthening yen against the dollar also hurt exporters like Toyota Motor Corporation and Sony Corporation.
In Hong Kong, the benchmark Hang Seng index dropped 948.7 points, or 3.20 per cent, to 28,760.2, with property shares falling sharply.
Analysts warned that the market, which has surged this year, could fall further.
"There's no rush to buy stocks on dips as further downside may be imminent. It's riskier to buy now," said Conita Hung, a director at Delta Asia Financial Group.
In mainland China, the markets were hurt by declines overnight in American Depositary Receipts of large Chinese traded in New York.