Most Asian markets sink
Tuesday, 8 January 2008
BANGKOK, Jan 7 (AP): Most Asian markets fell Monday amid worries that reports of weaker-than-expected US job growth may portend a recession.
Japan's benchmark index fell to its lowest in nearly a year-and-a-half while Hong Kong's stock market sank 1.20 per cent and Taiwan's key index tumbled 4.10 per cent.
Stocks in China and India bucked the regional trend to climb higher. But investors across much of Asia dumped shares after a sharp drop on Wall Street Friday following the dismal jobs figures and a rise in the US unemployment rate to 5.0 per cent, fanning concerns about a slowdown in the US, a vital export market for Asian companies.
"Today's sell-off was due to concrete evidence that the housing market woes have finally started eroding the US economy," said Masatoshi Sato, senior strategist at Mizuho Investors Securities in Tokyo.
Japan's benchmark Nikkei index lost 190.86 points, or 1.30 per cent, to 14,500.55 points, its lowest since July 18, 2006. That follows a 4 per cent plunge Friday, the first day of trading in 2008 in Tokyo.
Decliners included shipbuilder Kawasaki Kisen, which fell 5.80 per cent, and Nippon Steel, which shed 2.80 per cent.
Sony rose 0.70 per cent and Matsushita Electric Industrial added 0.70 per cent after US movie studio Warner Bros. said that it will support Sony's Blu-ray format for next-generation DVDs. Matsushita supports the format.
In Hong Kong, the Hang Seng Index dropped 340.20 points, or 1.24 per cent, to 27,179.49, paring losses after earlier dropping 3.0 per cent.
"The Hang Seng Index may drop to 26,000 to 26,500 points this week. This provides a good entry point for long-term investors, given the US may cut its interest rate by more than a quarter percentage point later this month," said Dao Heng Securities Ltd.
The three biggest heavyweights on the Hang Seng Index led the decline. HSBC fell 1.80 per cent, China Mobile dropped 1 per cent and PetroChina ended 2.30 per cent lower.
Japan's benchmark index fell to its lowest in nearly a year-and-a-half while Hong Kong's stock market sank 1.20 per cent and Taiwan's key index tumbled 4.10 per cent.
Stocks in China and India bucked the regional trend to climb higher. But investors across much of Asia dumped shares after a sharp drop on Wall Street Friday following the dismal jobs figures and a rise in the US unemployment rate to 5.0 per cent, fanning concerns about a slowdown in the US, a vital export market for Asian companies.
"Today's sell-off was due to concrete evidence that the housing market woes have finally started eroding the US economy," said Masatoshi Sato, senior strategist at Mizuho Investors Securities in Tokyo.
Japan's benchmark Nikkei index lost 190.86 points, or 1.30 per cent, to 14,500.55 points, its lowest since July 18, 2006. That follows a 4 per cent plunge Friday, the first day of trading in 2008 in Tokyo.
Decliners included shipbuilder Kawasaki Kisen, which fell 5.80 per cent, and Nippon Steel, which shed 2.80 per cent.
Sony rose 0.70 per cent and Matsushita Electric Industrial added 0.70 per cent after US movie studio Warner Bros. said that it will support Sony's Blu-ray format for next-generation DVDs. Matsushita supports the format.
In Hong Kong, the Hang Seng Index dropped 340.20 points, or 1.24 per cent, to 27,179.49, paring losses after earlier dropping 3.0 per cent.
"The Hang Seng Index may drop to 26,000 to 26,500 points this week. This provides a good entry point for long-term investors, given the US may cut its interest rate by more than a quarter percentage point later this month," said Dao Heng Securities Ltd.
The three biggest heavyweights on the Hang Seng Index led the decline. HSBC fell 1.80 per cent, China Mobile dropped 1 per cent and PetroChina ended 2.30 per cent lower.