World stocks fall on Korea clash, Europe debt woes
Wednesday, 24 November 2010
HONG KONG, Nov 23 (AP): World markets slid Tuesday as investors fretted Ireland's debt crisis will spread to other financially weak European countries and Asian stocks took an extra hit from news that North Korea had fired dozens of artillery rounds into rival South Korea's territory.
In early European trade, Britain's FTSE 100 was down 0.9 per cent at 5,680.83 and Germany's DAX slipped 0.3 per cent to 6,822.05. France's CAC-40 shed 0.4 per cent to 3,788.80.
Wall Street was set to fall with Dow futures off 89 points, or 0.8 per cent, at 11,076.00.
Initial relief that Ireland had relented and asked for European Union and International Monetary Fund help to bailout its heavily indebted banks was shortlived. Experts said the bailout - the total amount of which is still being decided - would do little to shield other heavily indebted countries from a potential collapse in investor confidence, most immediately Portugal but also potentially Spain, Italy and Greece.
North Korea's attack on neighbouring South Korea added to losses in the Asian stock markets still open when news broke of the latest escalation in tensions.
The North shot dozens of rounds of artillery onto a populated South Korean island near their disputed border, prompting South Korea to return fire and scramble fighter jets, military officials said. At least one South Korean marine reportedly was killed.
Hong Kong's Hang Seng index tumbled 2.7 per cent to 22,896.14 and India's Sensex was down 2.1 per cent at 19,548.51. Singapore's index lost 1.6 per cent to 19,548.51.
South Korea's Kospi, already closed for the day when news of the attack came out, lost 0.8 per cent to 1,928.94.
Japan's markets were shut for a national holiday.
China's Shanghai Composite Index shed 1.9 per cent to 2,828.28 with sentiment hurt by expectations Beijing will take more steps to cool inflation that could slow economic growth.
On Monday in New York, stocks were muted because of the European debt crisis as well as an expanding probe into insider trading. The Dow Jones industrial average fell 24.97 points, 0.2 per cent, to 11,178.58.
There are doubts Ireland's government will survive long enough to secure parliamentary approval for a budget that will include multibillion dollar spending cuts as a condition of the outside assistance.
"The euro debt crisis will provide an excuse for investors to stay on the sidelines for the time being," said Ben Kwong Man Bun, the chief operating officer at KGI Securities in Hong Kong.
In early European trade, Britain's FTSE 100 was down 0.9 per cent at 5,680.83 and Germany's DAX slipped 0.3 per cent to 6,822.05. France's CAC-40 shed 0.4 per cent to 3,788.80.
Wall Street was set to fall with Dow futures off 89 points, or 0.8 per cent, at 11,076.00.
Initial relief that Ireland had relented and asked for European Union and International Monetary Fund help to bailout its heavily indebted banks was shortlived. Experts said the bailout - the total amount of which is still being decided - would do little to shield other heavily indebted countries from a potential collapse in investor confidence, most immediately Portugal but also potentially Spain, Italy and Greece.
North Korea's attack on neighbouring South Korea added to losses in the Asian stock markets still open when news broke of the latest escalation in tensions.
The North shot dozens of rounds of artillery onto a populated South Korean island near their disputed border, prompting South Korea to return fire and scramble fighter jets, military officials said. At least one South Korean marine reportedly was killed.
Hong Kong's Hang Seng index tumbled 2.7 per cent to 22,896.14 and India's Sensex was down 2.1 per cent at 19,548.51. Singapore's index lost 1.6 per cent to 19,548.51.
South Korea's Kospi, already closed for the day when news of the attack came out, lost 0.8 per cent to 1,928.94.
Japan's markets were shut for a national holiday.
China's Shanghai Composite Index shed 1.9 per cent to 2,828.28 with sentiment hurt by expectations Beijing will take more steps to cool inflation that could slow economic growth.
On Monday in New York, stocks were muted because of the European debt crisis as well as an expanding probe into insider trading. The Dow Jones industrial average fell 24.97 points, 0.2 per cent, to 11,178.58.
There are doubts Ireland's government will survive long enough to secure parliamentary approval for a budget that will include multibillion dollar spending cuts as a condition of the outside assistance.
"The euro debt crisis will provide an excuse for investors to stay on the sidelines for the time being," said Ben Kwong Man Bun, the chief operating officer at KGI Securities in Hong Kong.