Asian markets fall
Tuesday, 13 November 2007
TOKYO, Nov 12 (AP): Asian markets fell sharply Monday after Wall Street declined at the end of last week on renewed concerns about US mortgage problems. European markets, however, were mixed in early morning trade.
"Basically, the subprime loan issue still drags on, and there is no prospect of what can end the problem," said Shinichi Ichikawa, chief strategist at Credit Suisse of the falls in Asian markets.
Major banks warned last week of further losses in their debt portfolios, raising investor concerns that the credit market slump isn't abating.
Japan's benchmark Nikkei 225 index fell 2.50 per cent, and Hong Kong's Hang Seng dropped 3.90 per cent. In South Korea, the Korea Composite Stock Price Index, or Kospi, fell 3.40 per cent.
Both the Hang Seng and the Kospi fell more than 4.0 per cent during intraday trade, and the Nikkei dipped below 15,000 points for the first time since July 2006.
"As for the US economy, the risk of recession is increasing toward the next year amid the lingering subprime loan problems," which, combined with higher oil prices, prompted players to sell the dollar, Ichikawa said.
Japanese traders sold exporter issues on the strengthening yen, which is at its highest levels against the dollar in 18 months.
Automaker Honda Motor Company fell 3.60 per cent and rival Toyota Motor Corporation shed 2.80 per cent. Sony Corp. dropped 2.60 per cent.
In Hong Kong, bank HSBC shed 2.80 per cent on subprime exposure woes.
Chinese financial shares were also lower after China's central bank raised the reserve requirement for banks by 50 basis points to 13.50 per cent at the weekend in another of its money-tightening measures.
Bank of China fell 3.90 per cent. China Construction Bank fell 4.40 per cent. ICBC fell 5.0 per cent.
In other Asian markets, shares tumbled as well. The Shanghai composite index lost 2.40 per cent amid unconfirmed rumours the China Securities Regulatory Commission recently ordered funds to hold off on aggressive buying.
The benchmark indices lost ground in Australia, the Philippines, Taiwan and Thailand.
On Friday, the Dow Jones industrial average fell 1.70 per cent to 13,042.7.
"Basically, the subprime loan issue still drags on, and there is no prospect of what can end the problem," said Shinichi Ichikawa, chief strategist at Credit Suisse of the falls in Asian markets.
Major banks warned last week of further losses in their debt portfolios, raising investor concerns that the credit market slump isn't abating.
Japan's benchmark Nikkei 225 index fell 2.50 per cent, and Hong Kong's Hang Seng dropped 3.90 per cent. In South Korea, the Korea Composite Stock Price Index, or Kospi, fell 3.40 per cent.
Both the Hang Seng and the Kospi fell more than 4.0 per cent during intraday trade, and the Nikkei dipped below 15,000 points for the first time since July 2006.
"As for the US economy, the risk of recession is increasing toward the next year amid the lingering subprime loan problems," which, combined with higher oil prices, prompted players to sell the dollar, Ichikawa said.
Japanese traders sold exporter issues on the strengthening yen, which is at its highest levels against the dollar in 18 months.
Automaker Honda Motor Company fell 3.60 per cent and rival Toyota Motor Corporation shed 2.80 per cent. Sony Corp. dropped 2.60 per cent.
In Hong Kong, bank HSBC shed 2.80 per cent on subprime exposure woes.
Chinese financial shares were also lower after China's central bank raised the reserve requirement for banks by 50 basis points to 13.50 per cent at the weekend in another of its money-tightening measures.
Bank of China fell 3.90 per cent. China Construction Bank fell 4.40 per cent. ICBC fell 5.0 per cent.
In other Asian markets, shares tumbled as well. The Shanghai composite index lost 2.40 per cent amid unconfirmed rumours the China Securities Regulatory Commission recently ordered funds to hold off on aggressive buying.
The benchmark indices lost ground in Australia, the Philippines, Taiwan and Thailand.
On Friday, the Dow Jones industrial average fell 1.70 per cent to 13,042.7.