Nov 27, 2009
Asian markets tumble
The falls in Asia followed steep declines in Europe and the Middle East. -- PHOTO: AP
HONG KONG - ASIAN shares tumbled in early trade on Friday, following global equity markets down on fears of a widespread default after Dubai issued a shock call to suspend the debt of a key state company.
The falls in Asia followed steep declines in Europe and the Middle East on Thursday as investors' appetite for risk evaporated, with US markets closed for the Thanksgiving holiday.
The government of Dubai rocked financial markets on Wednesday when it said it would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months.
The Dubai request 'fed a climate of insecurity and crisis of confidence at a time when fears are mounting about excessive public debt", said Xavier de Villepion, an analyst with Global Equities in Paris.
The move hit banking shares as investors fretted over their exposure to a potential debt crisis.
Earlier London's FTSE index of leading shares closed 3.18 percent lower after having been forced to suspend trading for three and a half hours due to a technical hitch. Frankfurt's DAX index fell 3.25 per cent and in Paris the CAC closed 3.41 per cent lower, with major banks suffering all round.
TOKYO
Tokyo shares slumped 3.22 per cent on Friday after a rout on global stock markets sparked by fears of a debt default by Dubai, and as the yen hit a fresh 14-year high against the dollar.
The benchmark Nikkei index shed 301.72 points to 9,081.52. The broader Topix index of all first-section shares lost 18.55 points, or 2.24 per cent, to 811.01.
HONG KONG
Hong Kong shares were 3.13 per cent lower in the first few minutes of trade on Friday, with the benchmark Hang Seng Index losing 696.29 points to 21,514.12.
The fall in Hong Kong follows a global equity slump Thursday, with Europe down three per cent after Dubai's shock call to suspend the debt of a key state company fuelled anxiety about excessive public borrowing.
The government of Dubai shocked financial markets on Wednesday when it said it would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months.
SHANGHAI
Chinese shares fell 1.05 per cent by midday on Friday, as investors remained worried that Beijing may tighten its monetary policy as the economy shows signs of recovery, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was down 33.33 points at 3,137.65. The key index had shed 4.2 per cent from Monday to Thursday.
'This week's roller-coaster ride has made investors very fragile. Many are in two minds about the market's outlook, optimistic one day, pessimistic the next,' Southwest Securities analyst Yan Li told Dow Jones Newswires.
But environment-related stocks bucked the downward trend after China's cabinet unveiled on Thursday a plan to boost energy efficiency and curb its carbon footprint, traders said.
The Shanghai A-share index fell 35.03 points, or 1.05 per cent, to 3,291.07, while the Shenzhen A-share index lost 14.00 points, or 1.14 per cent, to 1,216.12.
Asian markets tumble
The falls in Asia followed steep declines in Europe and the Middle East. -- PHOTO: AP
HONG KONG - ASIAN shares tumbled in early trade on Friday, following global equity markets down on fears of a widespread default after Dubai issued a shock call to suspend the debt of a key state company.
The falls in Asia followed steep declines in Europe and the Middle East on Thursday as investors' appetite for risk evaporated, with US markets closed for the Thanksgiving holiday.
The government of Dubai rocked financial markets on Wednesday when it said it would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months.
The Dubai request 'fed a climate of insecurity and crisis of confidence at a time when fears are mounting about excessive public debt", said Xavier de Villepion, an analyst with Global Equities in Paris.
The move hit banking shares as investors fretted over their exposure to a potential debt crisis.
Earlier London's FTSE index of leading shares closed 3.18 percent lower after having been forced to suspend trading for three and a half hours due to a technical hitch. Frankfurt's DAX index fell 3.25 per cent and in Paris the CAC closed 3.41 per cent lower, with major banks suffering all round.
TOKYO
Tokyo shares slumped 3.22 per cent on Friday after a rout on global stock markets sparked by fears of a debt default by Dubai, and as the yen hit a fresh 14-year high against the dollar.
The benchmark Nikkei index shed 301.72 points to 9,081.52. The broader Topix index of all first-section shares lost 18.55 points, or 2.24 per cent, to 811.01.
HONG KONG
Hong Kong shares were 3.13 per cent lower in the first few minutes of trade on Friday, with the benchmark Hang Seng Index losing 696.29 points to 21,514.12.
The fall in Hong Kong follows a global equity slump Thursday, with Europe down three per cent after Dubai's shock call to suspend the debt of a key state company fuelled anxiety about excessive public borrowing.
The government of Dubai shocked financial markets on Wednesday when it said it would ask creditors of its Dubai World conglomerate for a debt moratorium of at least six months.
SHANGHAI
Chinese shares fell 1.05 per cent by midday on Friday, as investors remained worried that Beijing may tighten its monetary policy as the economy shows signs of recovery, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was down 33.33 points at 3,137.65. The key index had shed 4.2 per cent from Monday to Thursday.
'This week's roller-coaster ride has made investors very fragile. Many are in two minds about the market's outlook, optimistic one day, pessimistic the next,' Southwest Securities analyst Yan Li told Dow Jones Newswires.
But environment-related stocks bucked the downward trend after China's cabinet unveiled on Thursday a plan to boost energy efficiency and curb its carbon footprint, traders said.
The Shanghai A-share index fell 35.03 points, or 1.05 per cent, to 3,291.07, while the Shenzhen A-share index lost 14.00 points, or 1.14 per cent, to 1,216.12.
