Asian stocks mixed as credit fears resurface
Friday, 11 July 2008
HONG KONG, July 10 (Thomson Financial): Asian stock markets were mixed Thursday with Australia and Shanghai losing ground led down by financials on renewed concerns about credit markets and slowing economic growth.
Hong Kong rebounded after falling in early trade due to losses on Wall Street overnight. In Sydney, the S&P/ASX 200 was down 0.9 per cent at 4,965.3 and the All Ordinaries was down 0.9 per cent at 5,044.6.
Financials led the decline after the US government-sponsored lenders Freddie Mac and Fannie Mae tanked on worries that the mortgage finance companies will have to sell more shares than anticipated to compensate for losses from the housing slump. Merrill Lynch & Company also fell after Fitch Ratings put its long-term credit default rating on watch for a possible downgrade.
Among the big banks, National Australia Bank lost 2.9 per cent to A$26.80 and Commonwealth Bank of Australia fell 2.9 per cent to A$40.27.
The Shanghai composite index was down 0.7 per cent at 2,898.94 as investors locked in gains after the key index gained about 9.0 per cent over the previous three days.
The Nikkei 225 index rose 0.5 per cent to 13,115.24, reversing early losses as bargain hunters stepped in. The Topix index was up 0.8 per cent at 1,296.07.
Hong Kong rebounded after falling in early trade due to losses on Wall Street overnight. In Sydney, the S&P/ASX 200 was down 0.9 per cent at 4,965.3 and the All Ordinaries was down 0.9 per cent at 5,044.6.
Financials led the decline after the US government-sponsored lenders Freddie Mac and Fannie Mae tanked on worries that the mortgage finance companies will have to sell more shares than anticipated to compensate for losses from the housing slump. Merrill Lynch & Company also fell after Fitch Ratings put its long-term credit default rating on watch for a possible downgrade.
Among the big banks, National Australia Bank lost 2.9 per cent to A$26.80 and Commonwealth Bank of Australia fell 2.9 per cent to A$40.27.
The Shanghai composite index was down 0.7 per cent at 2,898.94 as investors locked in gains after the key index gained about 9.0 per cent over the previous three days.
The Nikkei 225 index rose 0.5 per cent to 13,115.24, reversing early losses as bargain hunters stepped in. The Topix index was up 0.8 per cent at 1,296.07.