Asian markets fall as China moves to curb credit
Thursday, 14 January 2010
HONG KONG, Jan 13 (Agencies): Fears that the global recovery may lose steam weighed on Asian shares Wednesday as China moved to curb its credit boom and Wall Street's earnings season got off to a weak start.
Tokyo closed 1.32 per cent lower as shares in stricken Japan Airlines tumbled 81 per cent to just seven yen (eight US cents) on a flood of sell orders due to fears the carrier, which faces bankruptcy, will be delisted.
The Nikkei shed 144.11 points to 10,735.03. "The selling is unstoppable," said Hideaki Higashi, a strategist at SMBC Friend Securities.
In afternoon trade Hong Kong slumped 2.24 per cent and the Shanghai tumbled 2.79 per cent after Beijing moved to raise the amount of money banks must hold in reserves by 50 basis points, dealers said.
That followed Beijing's decision to raise the yield on one-year Chinese government bills for the first time in five months, after last week's similar move on another benchmark sale, in a sign of tighter borrowing costs.
"Investors' sentiment was hurt by the sooner-than-expected reserve requirement ratio hike while concerns over further monetary tightening will make investors more cautious in the future," Citic Securities analyst Yu Jun told Dow Jones Newswires.
Sydney lost 31.4 points, or 0.64 per cent, to 4,868.10, led by resources as investors took fright at China's tightening moves.
"Anything from stocks to currencies exposed to China is being sold," said IG Markets research analyst Ben Potter. "The market wasn't expecting the measures so soon."
Engineering and maintenance group WorleyParsons dropped 11.4 per cent to 25.99 Australian dollars (24 US dollars) after lowering its 2010 full-year profit guidance.
Seoul's KOSPI closed down 27.23 points, or 1.60 per cent, at 1,671.14 led by steelmakers, shipbuilders and brokerages on concerns China may soon raise interest rates. Singapore was down 0.62 per cent.
Wall Street earlier provided a weak lead, where the Dow Jones Industrial Average dropped 36.73 points, or 0.34 per cent, to end at 10,627.26.
Traders mulled Monday's disappointing profit forecast from aluminum giant Alcoa, the first of the blue-chip US companies to release financial results.
Tokyo closed 1.32 per cent lower as shares in stricken Japan Airlines tumbled 81 per cent to just seven yen (eight US cents) on a flood of sell orders due to fears the carrier, which faces bankruptcy, will be delisted.
The Nikkei shed 144.11 points to 10,735.03. "The selling is unstoppable," said Hideaki Higashi, a strategist at SMBC Friend Securities.
In afternoon trade Hong Kong slumped 2.24 per cent and the Shanghai tumbled 2.79 per cent after Beijing moved to raise the amount of money banks must hold in reserves by 50 basis points, dealers said.
That followed Beijing's decision to raise the yield on one-year Chinese government bills for the first time in five months, after last week's similar move on another benchmark sale, in a sign of tighter borrowing costs.
"Investors' sentiment was hurt by the sooner-than-expected reserve requirement ratio hike while concerns over further monetary tightening will make investors more cautious in the future," Citic Securities analyst Yu Jun told Dow Jones Newswires.
Sydney lost 31.4 points, or 0.64 per cent, to 4,868.10, led by resources as investors took fright at China's tightening moves.
"Anything from stocks to currencies exposed to China is being sold," said IG Markets research analyst Ben Potter. "The market wasn't expecting the measures so soon."
Engineering and maintenance group WorleyParsons dropped 11.4 per cent to 25.99 Australian dollars (24 US dollars) after lowering its 2010 full-year profit guidance.
Seoul's KOSPI closed down 27.23 points, or 1.60 per cent, at 1,671.14 led by steelmakers, shipbuilders and brokerages on concerns China may soon raise interest rates. Singapore was down 0.62 per cent.
Wall Street earlier provided a weak lead, where the Dow Jones Industrial Average dropped 36.73 points, or 0.34 per cent, to end at 10,627.26.
Traders mulled Monday's disappointing profit forecast from aluminum giant Alcoa, the first of the blue-chip US companies to release financial results.