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Asian stocks extend losses
Jan 25, 2010
HONG KONG - ASIAN stocks markets extended their slide on Monday after Wall Street suffered its biggest rout since the depths of last year's financial crisis.
Most markets dropped by about 1 percent or less as the region headed for its fourth day of losses. The dollar eased against the yen and the euro, while oil prices were little changed below US$75 (S$105) a barrel.
Investors continued to cut back their bets on stocks after US markets tumbled on Friday to their worst three-day showing since they hit bottom last March.
Uncertainty over the ultimate effects of US President Barack Obama's bank reform plan was cause for more caution, analysts said, as were worries about earnings results from American companies and rising opposition to Federal Reserve Chairman Ben Bernanke's reappointment.
In Asia, investors already on edge about China's economy and moves to prevent overheating were further unnerved after Bank of China announced plans to raise some US$5.8 billion to replenish its capital and meet government standards. The country's bank stocks were hit hard as a result.
In Japan, the Nikkei 225 stock average fell 60.24 points, or 0.6 per cent, to 10,530.31, and Hong Kong's Hang Seng fell 183.76 points, or 0.9 per cent, to 20,542.42.
Elsewhere, South Korea's market dropped 14.85 points, or 0.9 per cent, to 1,669.50. China's Shanghai index lost 0.6 per cent, Australia's market was down 0.7 per cent and India's benchmark shed 0.6 per cent.
Wall Street was poised for a higher open after US futures gained ground.
Friday in the US, the Dow Jones industrial average slid 216 points, or 2.1 percent, to 10,172.98.
The Standard & Poor's 500 index fell 24.72, or 2.2 percent, to 1,091.76. The index is down 5.1 per cent in three days, its worst drop since March 2009.
Oil prices lingered below US$75 a barrel in Asia, with benchmark crude for March delivery up 4 cents to US$74.58 a barrel. The contract lost US$1.54 to settle at US$74.54 on Friday.
The dollar weakened to 90.07 yen from 90.31 yen. The euro was flat at US$1.4159. -- AP
KUALA LUMPUR
Share prices on Bursa Malaysia suffered further losses on Monday following the downtrend in the US market, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia Composite Index (FBM KLCI) fell 3.66 points to 1,296.79, after opening 3.14 points lower at 1,297.31.
Dealers said the local bourse was affected by the Wall Street slide amid plans to limit risk-taking by US banks and doubts whether Ben Bernanke would win the US Senate confirmation as US Federal Reserve Chairman for a second term.
TA Securities analyst Stephen Soo said that the regional markets were also down on news about Bank of China's fundraising plans and higher mortgage rates in China.
He expected FBM KLCI to remain in a correction mode over the next few days with the support level pegged between 1,294 and 1,285 and resistance around 1,300-1,308.
HONG KONG & CHINA
Hong Kong shares dropped 0.62 per cent on Monday following sharp falls on Wall Street amid uncertainty over US President Barack Obama's bank revamp proposals.
Concerns that fund-raising plans in China's banking sector could dilute share value also weighed on sentiment, dealers said.
The benchmark Hang Seng Index gave up 127.63 points to finish at 20,598.55.
Turnover was HK$63.40 billion (S$11.4 billion).
In Shanghai, Chinese shares closed down 1.09 per cent on Monday with banks leading the losses amid jitters over fund-raising plans.
Chinese banks need to meet regulatory requirements for capital after a lending spree last year in response to government calls to support the country's massive economic stimulus efforts.
The Shanghai Composite Index, which covers both A and B shares, was down 34.18 points at 3,094.41 on turnover of 95.1 billion yuan (S$19.5 billion).
TOKYO
Japanese stocks closed down 0.74 per cent on Monday, hit by another plunge on Wall Street where worries mounted about US President Barack Obama's sweeping bank reform, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index declined 77.86 points to 10,512.69, after a 2.56 per cent drop on Friday.
The broader Topix index of all first-section shares fell 6.35 points, or 0.67 per cent, to 934.59.
Sentiment on global markets has soured since President Obama unveiled last Thursday a tough banking reform plan that would limit 'excessive' risk-taking blamed for the financial crisis.
'It seems that the Obama administration is trying to fight the decline in (its voter) support by addressing popular criticism against the financial sector,' Mizuho Securities analyst Yukio Takahashi told Dow Jones Newswires.
'This issue could continue to weigh on Wall Street.' -- AFP, BERNAMA
Jan 25, 2010
HONG KONG - ASIAN stocks markets extended their slide on Monday after Wall Street suffered its biggest rout since the depths of last year's financial crisis.
Most markets dropped by about 1 percent or less as the region headed for its fourth day of losses. The dollar eased against the yen and the euro, while oil prices were little changed below US$75 (S$105) a barrel.
Investors continued to cut back their bets on stocks after US markets tumbled on Friday to their worst three-day showing since they hit bottom last March.
Uncertainty over the ultimate effects of US President Barack Obama's bank reform plan was cause for more caution, analysts said, as were worries about earnings results from American companies and rising opposition to Federal Reserve Chairman Ben Bernanke's reappointment.
In Asia, investors already on edge about China's economy and moves to prevent overheating were further unnerved after Bank of China announced plans to raise some US$5.8 billion to replenish its capital and meet government standards. The country's bank stocks were hit hard as a result.
In Japan, the Nikkei 225 stock average fell 60.24 points, or 0.6 per cent, to 10,530.31, and Hong Kong's Hang Seng fell 183.76 points, or 0.9 per cent, to 20,542.42.
Elsewhere, South Korea's market dropped 14.85 points, or 0.9 per cent, to 1,669.50. China's Shanghai index lost 0.6 per cent, Australia's market was down 0.7 per cent and India's benchmark shed 0.6 per cent.
Wall Street was poised for a higher open after US futures gained ground.
Friday in the US, the Dow Jones industrial average slid 216 points, or 2.1 percent, to 10,172.98.
The Standard & Poor's 500 index fell 24.72, or 2.2 percent, to 1,091.76. The index is down 5.1 per cent in three days, its worst drop since March 2009.
Oil prices lingered below US$75 a barrel in Asia, with benchmark crude for March delivery up 4 cents to US$74.58 a barrel. The contract lost US$1.54 to settle at US$74.54 on Friday.
The dollar weakened to 90.07 yen from 90.31 yen. The euro was flat at US$1.4159. -- AP
KUALA LUMPUR
Share prices on Bursa Malaysia suffered further losses on Monday following the downtrend in the US market, dealers said.
At 5pm, the benchmark FTSE Bursa Malaysia Composite Index (FBM KLCI) fell 3.66 points to 1,296.79, after opening 3.14 points lower at 1,297.31.
Dealers said the local bourse was affected by the Wall Street slide amid plans to limit risk-taking by US banks and doubts whether Ben Bernanke would win the US Senate confirmation as US Federal Reserve Chairman for a second term.
TA Securities analyst Stephen Soo said that the regional markets were also down on news about Bank of China's fundraising plans and higher mortgage rates in China.
He expected FBM KLCI to remain in a correction mode over the next few days with the support level pegged between 1,294 and 1,285 and resistance around 1,300-1,308.
HONG KONG & CHINA
Hong Kong shares dropped 0.62 per cent on Monday following sharp falls on Wall Street amid uncertainty over US President Barack Obama's bank revamp proposals.
Concerns that fund-raising plans in China's banking sector could dilute share value also weighed on sentiment, dealers said.
The benchmark Hang Seng Index gave up 127.63 points to finish at 20,598.55.
Turnover was HK$63.40 billion (S$11.4 billion).
In Shanghai, Chinese shares closed down 1.09 per cent on Monday with banks leading the losses amid jitters over fund-raising plans.
Chinese banks need to meet regulatory requirements for capital after a lending spree last year in response to government calls to support the country's massive economic stimulus efforts.
The Shanghai Composite Index, which covers both A and B shares, was down 34.18 points at 3,094.41 on turnover of 95.1 billion yuan (S$19.5 billion).
TOKYO
Japanese stocks closed down 0.74 per cent on Monday, hit by another plunge on Wall Street where worries mounted about US President Barack Obama's sweeping bank reform, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index declined 77.86 points to 10,512.69, after a 2.56 per cent drop on Friday.
The broader Topix index of all first-section shares fell 6.35 points, or 0.67 per cent, to 934.59.
Sentiment on global markets has soured since President Obama unveiled last Thursday a tough banking reform plan that would limit 'excessive' risk-taking blamed for the financial crisis.
'It seems that the Obama administration is trying to fight the decline in (its voter) support by addressing popular criticism against the financial sector,' Mizuho Securities analyst Yukio Takahashi told Dow Jones Newswires.
'This issue could continue to weigh on Wall Street.' -- AFP, BERNAMA
