Asian stock markets dive on new recession fears
Written by Writer on Friday, October 24th, 2008
Asian stock markets dive on new recession fears
Tokyo (dpa) - Defying an overnight rise on Wall Street, Asian stocks, led by Tokyo and Seoul, plummeted Friday on renewed fears of worldwide recession.
Japan’s benchmark Nikkei 225 Stock Average lost nearly 10 per cent of its value, tumbling below 8,000 for the first time since May 2003, on indications the global financial crisis was beginning to hit the nation’s exporters.
The Nikkei shed 811.9 points, or 9.6 per cent, to close at 7,649.08.
The broader Topix index of all first-section issues plunged 65.59 points, or 7.52 per cent, to 806.11.
The tumble was led by Sony Corp, whose shares plunged 14 per cent one day after the world’s second-largest electronics company warned its profits this year were expected to drop nearly 60 per cent compared with last year.
The fall came in spite of an overnight rise on Wall Street, where the blue-chip Dow Jones Industrial Average rose 172.04 points, or 2.02 per cent, to 8,691.25. The broader based S&P 500 was up 11.33 points, or 1.26 per cent, to 908.11. But the high-tech Nasdaq Composite Index lost 11.84 points, or 0.73 per cent, to 1,603.91.
South Korea’s benchmark Kospi index lost 10.57 per cent, dropping below the 1,000-point level, the lowest since May 2005, as foreign investors continued to sell stocks.
The Kospi fell 110.96 points, or 10.57 per cent to close at 938.75.
Hong Kong’s benchmark Hang Seng Index slumped 8.3 per cent to plunge below 13,000, closing at 12,618.38, its lowest level in four years.
The index shed 1,142 points and in October has lost more than 30 per cent of its value so far.
Analysts blamed concerns about corporate earnings and wider global economic woes for the drop.
India’s benchmark Sensex opened weak and tanked 10 per cent to an over two-year low as investors sold heavily after the central bank disappointed them by keeping key rates unchanged in its policy review.
The 30-share-sensitive index, which opened more than 200 points down, lost a total of 974 points after mid-session.
The Sensex plunged to 8,797.70, a loss of 9.97 per cent, by 2:45 pm (09 15 GMT), after a credit and monetary review was announced by the Reserve Bank of India.
Taiwan stocks shed more than 3 per cent, with the TAIEX index falling 150.89 points, or 3.19 per cent, to close at 4,579.62.
In Singapore, the Straits Times Index crashed to 1,591.48 towards the closing bell but made a slight flip to close at 1,600.28, down by a huge 145.39, or 8.33 per cent.
Thai share values plunged 6.96 per cent. The Stock Exchange of Thailand (SET) index ended at 432.87, down 32.37 points or 6.96 per cent.
Indonesian stocks tumbled for a third straight day, dropping by 6.91 per cent, in line with sharp falls across Asia sparked by persistent worries that a global recession will eat into corporate profits.
Australia’s market also plunged. The benchmark S&P/ASX200 index closed down 4.37 per cent at 3,974.
The broader All Ordinaries index fell 4.39 per cent to 3,939. It was the second day in a row the index had fallen more than 3 per cent.
The Jakarta Composite Index closed at 1,244.86, down 92.34 points, or 6.91 per cent, slumping to its lowest since July 2006.
Philippine shares slipped by 2.12 per cent as investors remained jittery over the continued volatility in the stock markets around the world.
The Philippine Stock Exchange’s 30-share composite index shed 42.43 points to close at 1,953.49, from Thursday’s finish of 1,995.92.
Analysts said the volatility in the local market will continue amid fears of a recession in the United States and elsewhere.
Bangkok Post
Friday October 24, 2008
