Most Asia stocks end lower after US auto bailout fails
Sunday, 14 December 2008
BANGKOK, Dec 13: Southeast Asian stock markets mostly fell Friday after the failure of talks on a bailout for US car firms, with Singapore dropping for a second day as blue chip financials led decliners, according to Internet.
The US Senate failed to reach a last-ditch compromise to bail out automakers, effectively killing any chance of Congressional action this year. Asian stocks slid after the failure, as did oil.
'What happened to the US auto sector today is just another blow from the economic recession. Today we see it hit the auto sector. Tomorrow who knows who else and what sector is going to be next,' said Kongkiat Opaswongkarn, CEO of Asia Plus Securities in Bangkok.
'Stock selling in this region was clearly an immediate reaction to the bleak US bailout news,' he said.
Tokyo's Nikkei index slumped by more than 7.0 per cent at one point as the dollar tumbled below the key 90-yen level for the first time since 1995.
The Japanese benchmark ended down 5.60 per cent as exporters reeled from the stronger yen, which undercuts their overseas earnings.
Hong Kong shares closed down 5.48 per cent, Seoul dived 4.38 per cent and Sydney was off 2.40 per cent.
Singapore's Straits Times Index fell for a second day to end 3.0 per cent lower, with United Overseas Bank down 2.88 per cent and Oversea Chinese Banking Corp 3.87 per cent lower.
Ship-building and repair firm Cosco, the biggest blue-chip loser, sank 9.10 per cent, while container shipper NOL slid nearly 9.20 per cent.
But Thai stocks reversed a 2.60 per cent fall to end up 0.04 per cent as investors bet opposition Democrat Party leader Abhisit Vejjajiva would be elected prime minister Monday, helping restore confidence. See for details and for an interview with Abhisit.
Indonesian stocks closed down 4.08 per cent as auto-related shares fell in response to the apparent failure to get a bailout bill for the US auto industry through Congress Automotive distributor PT Astra International Tbk lost nearly 8.90 per cent.
In Bangkok, the automotive subindex slid to its lowest since January 2002 in early trade, led by AAPICO Hitech , which fell more than 5.0 per cent.
Indonesia's Adaro Energy dropped 5.70 per cent after it said that a unit had declared force majeure on coal deliveries to three customers after failing to reach a new price agreement as demanded by the government.
Most Southeast Asian stock markets have lost about half their value this year because of the gloomy world economic outlook.
In Kuala Lumpur, Southeast Asia's best performer this year, the main index dropped 0.98 per cent Friday, with decliners led by a 2.50 per cent fall in Tenaga Nasional.
Malaysia's top plantation company, Sime Darby, lost 3.64 per cent in response to a fall in Malaysian palm futures, while Singapore-listed Wilmar International was 1.41 per cent lower.
The US Senate failed to reach a last-ditch compromise to bail out automakers, effectively killing any chance of Congressional action this year. Asian stocks slid after the failure, as did oil.
'What happened to the US auto sector today is just another blow from the economic recession. Today we see it hit the auto sector. Tomorrow who knows who else and what sector is going to be next,' said Kongkiat Opaswongkarn, CEO of Asia Plus Securities in Bangkok.
'Stock selling in this region was clearly an immediate reaction to the bleak US bailout news,' he said.
Tokyo's Nikkei index slumped by more than 7.0 per cent at one point as the dollar tumbled below the key 90-yen level for the first time since 1995.
The Japanese benchmark ended down 5.60 per cent as exporters reeled from the stronger yen, which undercuts their overseas earnings.
Hong Kong shares closed down 5.48 per cent, Seoul dived 4.38 per cent and Sydney was off 2.40 per cent.
Singapore's Straits Times Index fell for a second day to end 3.0 per cent lower, with United Overseas Bank down 2.88 per cent and Oversea Chinese Banking Corp 3.87 per cent lower.
Ship-building and repair firm Cosco, the biggest blue-chip loser, sank 9.10 per cent, while container shipper NOL slid nearly 9.20 per cent.
But Thai stocks reversed a 2.60 per cent fall to end up 0.04 per cent as investors bet opposition Democrat Party leader Abhisit Vejjajiva would be elected prime minister Monday, helping restore confidence. See for details and for an interview with Abhisit.
Indonesian stocks closed down 4.08 per cent as auto-related shares fell in response to the apparent failure to get a bailout bill for the US auto industry through Congress Automotive distributor PT Astra International Tbk lost nearly 8.90 per cent.
In Bangkok, the automotive subindex slid to its lowest since January 2002 in early trade, led by AAPICO Hitech , which fell more than 5.0 per cent.
Indonesia's Adaro Energy dropped 5.70 per cent after it said that a unit had declared force majeure on coal deliveries to three customers after failing to reach a new price agreement as demanded by the government.
Most Southeast Asian stock markets have lost about half their value this year because of the gloomy world economic outlook.
In Kuala Lumpur, Southeast Asia's best performer this year, the main index dropped 0.98 per cent Friday, with decliners led by a 2.50 per cent fall in Tenaga Nasional.
Malaysia's top plantation company, Sime Darby, lost 3.64 per cent in response to a fall in Malaysian palm futures, while Singapore-listed Wilmar International was 1.41 per cent lower.