Asian markets fall on US forecast, profit-taking
Friday, 22 May 2009
HONG KONG, May 21 (AFP): Asian stock markets sank Thursday as a forecast downgrade in the outlook for the US economy by the Federal Reserve hit investor hopes for a worldwide rebound.
Hong Kong shed 1.58 per cent, Tokyo 0.86 per cent and Sydney 0.28 per cent, while Seoul was one per cent off and Shanghai 1.54 per cent.
Investors took their cue from Wall Street, where stocks fell 0.62 per cent Wednesday after the release of the Federal Reserve's findings.
The Fed estimated the US economy would shrink between 1.30 per cent and 2.0 per cent, after predicting only a 0.50 per cent to 1.30 per cent fall in January, according to minutes from April's Federal Open Market Committee meet.
TOKYO: Down 0.86 per cent. The Nikkei-225 fell 80.49 points to end at 9,264.15.
A stronger yen, as dealers move into more risky investments, also weighed on the market as it hurts exporters.
Canon fell 2.40 per cent to 3,230 yen and Honda Motor shed 1.50 per cent to 2,645.
HONG KONG: Down 1.58 per cent. The Hang Seng Index fell 276.35 points to 17,199.49.
However, the index is up 11 per cent since the start of the month and analysts said flush liquidity means any near-term pullback could be limited.
SYDNEY: Down 0.28 per cent. The S&P/ASX 200 lost 10.7 points to 3,813.9.
With speculation regarding an ANZ Banking Group capital raising continuing to hang over the market, a dealer said financials did most of the damage on a day of relatively light trading.
SHANGHAI: Down 1.54 per cent. The Shanghai Composite Index, which covers A and B shares, shed 40.79 points to 2,610.62.
TAIPEI: Up 0.23 per cent. The weighted index rose 15.19 points to 6,718.81.
Confidence over improved cross-Strait ties continued to help the market, dealers said.
SEOUL: Down 0.98 per cent. The KOSPI ended down 14.05 points at 1,421.65.
Analysts said ample liquidity in local financial markets may continue to support the index, preventing any drastic correction.
SINGAPORE: Down 2.57 per cent. The blue-chip Straits Times Index tumbled 58.27 points to 2,210.97.
"Bouts of profit-taking along the way are healthy," said AmFraser Securities senior vice president of equity sales Gabriel Gan, who said the market was likely to resume its rise in the next few trading days.
KUALA LUMPUR: Down 0.68 per cent. The Kuala Lumpur Composite Index lost 7.11 points to 1,035.56.
BANGKOK: Down 2.25 per cent. The Stock Exchange of Thailand index fell 12.64 points to close at 548.77 points.
WELLINGTON: Down 0.88 per cent. The NZX-50 index fell 24.77 points to 2,776.31.
Hong Kong shed 1.58 per cent, Tokyo 0.86 per cent and Sydney 0.28 per cent, while Seoul was one per cent off and Shanghai 1.54 per cent.
Investors took their cue from Wall Street, where stocks fell 0.62 per cent Wednesday after the release of the Federal Reserve's findings.
The Fed estimated the US economy would shrink between 1.30 per cent and 2.0 per cent, after predicting only a 0.50 per cent to 1.30 per cent fall in January, according to minutes from April's Federal Open Market Committee meet.
TOKYO: Down 0.86 per cent. The Nikkei-225 fell 80.49 points to end at 9,264.15.
A stronger yen, as dealers move into more risky investments, also weighed on the market as it hurts exporters.
Canon fell 2.40 per cent to 3,230 yen and Honda Motor shed 1.50 per cent to 2,645.
HONG KONG: Down 1.58 per cent. The Hang Seng Index fell 276.35 points to 17,199.49.
However, the index is up 11 per cent since the start of the month and analysts said flush liquidity means any near-term pullback could be limited.
SYDNEY: Down 0.28 per cent. The S&P/ASX 200 lost 10.7 points to 3,813.9.
With speculation regarding an ANZ Banking Group capital raising continuing to hang over the market, a dealer said financials did most of the damage on a day of relatively light trading.
SHANGHAI: Down 1.54 per cent. The Shanghai Composite Index, which covers A and B shares, shed 40.79 points to 2,610.62.
TAIPEI: Up 0.23 per cent. The weighted index rose 15.19 points to 6,718.81.
Confidence over improved cross-Strait ties continued to help the market, dealers said.
SEOUL: Down 0.98 per cent. The KOSPI ended down 14.05 points at 1,421.65.
Analysts said ample liquidity in local financial markets may continue to support the index, preventing any drastic correction.
SINGAPORE: Down 2.57 per cent. The blue-chip Straits Times Index tumbled 58.27 points to 2,210.97.
"Bouts of profit-taking along the way are healthy," said AmFraser Securities senior vice president of equity sales Gabriel Gan, who said the market was likely to resume its rise in the next few trading days.
KUALA LUMPUR: Down 0.68 per cent. The Kuala Lumpur Composite Index lost 7.11 points to 1,035.56.
BANGKOK: Down 2.25 per cent. The Stock Exchange of Thailand index fell 12.64 points to close at 548.77 points.
WELLINGTON: Down 0.88 per cent. The NZX-50 index fell 24.77 points to 2,776.31.