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Oct 24, 2008
Asia shares plunge at close
TOKYO - ASIAN stock markets plunged to their lowest levels in years on Friday as fears grew that the financial crisis is taking a heavy toll on corporate earnings.
The yen soared to a 13-year high against the dollar and to a six-year peak against the euro as investors took shelter from the latest storm lashing global financial markets.
'The best word to describe what's going on right now is panic,' said Credit Suisse strategist Satoru Ogasawara. 'When you don't know what will come next, you tend to flee to the safest place'.
Japan's Nikkei index plunged 9.60 per cent, ending below the key 8,000-point level for the first time in more than five years as the yen soared and after a profit warning from tech giant Sony.
South Korean shares dived 10.6 per cent - a day after a 7.4 per cent plunge - after the domestic economy grew at its slowest pace for four years and Samsung Electronics reported a sharp drop in quarterly profit.
'The market seems to be still in panic,' Mr Lee Kyung Soo, from Taurus Investment & Securities, told Dow Jones Newswires in Seoul.
Sydney ended with a loss of 2.6 per cent, while Hong Kong was down nearly seven percent in the afternoon session.
The sell-off came as Asian leaders meeting in Beijing agreed to set up an US$80 billion (S$120.7 billion) fund to fight the global economic crisis.
The deal between South Korea, China, Japan and the 10 members of the Association of South-east Asian Nations is the first major coordinated regional action since the full force of the financial turmoil erupted last month.
In Australia, three big investment firms said they had frozen at least 3.66 billion US dollars' worth of investors' funds to stem an exodus sparked by a government deposit guarantee.
The rout supported the yen, particularly against higher-yielding currencies such as the euro, the Australian dollar and the British pound.
The dollar fell to 95.32 yen, its weakest since August 1995.
The euro slipped below 123 yen for the first time in almost six years as investors unwound risky bets funded with cheap Japanese credit.
The stronger currency is bad news for exporters such as Sony, which warned it now expects its annual profits to drop by more than half.
Governments around the world have pumped cash into the banking system in recent weeks to try to contain what former Federal Reserve chairman Alan Greenspan described on Thursday as a 'once-in-a-century credit tsunami'.
While there have been some tentative signs of an easing of the credit crunch, concerns are growing about the worsening outlook for economic growth and corporate earnings.
'The theme of weaker global growth has replaced the issue of troubled banks for now and continues to weigh on investor psyches', said analysts at UBS.
Wall Street's share indexes closed mostly higher on Thursday in a volatile session.
'But it was only a marginal gain after massive selling. The direction of global markets has not changed', said Mr Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking in Tokyo.
In Latin America, the stock market in the region's biggest economy, Brazil, closed 3.57 per cent lower, extending Wednesday's loss of more than 10 per cent.
KUALA LUMPUR
Malaysian stocks slumped 3.6 per cent on Friday on foreign selling triggered by weaker regional bourses and a decline in commodity prices, dealers said.
The Kuala Lumpur Composite Index shed 32.21 points to 859.11.
HONG KONG
Hong Kong share prices closed 8.3 per cent down on Friday to its lowest level in four years, as investors dumped their stocks in panic over fears of a global recession, dealers said.
The benchmark Hang Seng Index plunged 1,142.11 points to 12,618.38.
Turnover was 56.14 billion Hong Kong dollars (S$10.86 billion).
Many financial stocks plunged about 10 per cent on concerns over slowing growth in emerging markets. Heavyweight HSBC nosedived 12.52 per cent, while Bank of East Asia dropped 10.96 per cent.
SHANGHAI
Chinese share prices closed down 1.92 per cent on Friday as pessimism surrounding the earnings outlook for property developers and financial companies dragged down the market, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, was down 35.94 points at 1,839.62 on turnover of 31.7 billion yuan (S$6.9 billion).
The Shanghai A-share index fell 37.69 points, or 1.91 per cent, to 1,932.37 on turnover of 31.6 billion yuan, while the Shenzhen A-share index lost 8.99 points, or 1.66 per cent, to 531.72 on turnover of 12.5 billion yuan.
SEOUL
South Korean shares closed 10.6 per cent lower on Friday, with extended losses in big exporters amid general gloom about the state of the world economy.
The Kospi index ended down 110.96 points at 938.75, the lowest figure since May 2005.
The won ended at its lowest against the dollar since June 1998. It was 1,424 to the US unit compared to 1,408.8 at the close on Thursday.
TOKYO
Japan's Nikkei stock index plunged 9.60 per cent on Friday, ending below the key 8,000-point level for the first time in more than five years as worries grew about weak corporate earnings.
Investors dumped stocks after the yen struck a 13-year high against the US dollar and a six year peak against the euro, darkening the outlook for exporters.
A profit-warning from tech giant Sony added to the gloomy mood.
The Nikkei-225 index lost 811.90 points to close at 7,649.08, the lowest level since April 28, 2003. -- AFP, BERNAMA, THOMSON REUTERS
Read also:
Nikkei sinks to 5-yr low
http://www.straitstimes.com/Breaking+News/Money/Story/STIStory_294313.html
Oct 24, 2008
Asia shares plunge at close
TOKYO - ASIAN stock markets plunged to their lowest levels in years on Friday as fears grew that the financial crisis is taking a heavy toll on corporate earnings.
The yen soared to a 13-year high against the dollar and to a six-year peak against the euro as investors took shelter from the latest storm lashing global financial markets.
'The best word to describe what's going on right now is panic,' said Credit Suisse strategist Satoru Ogasawara. 'When you don't know what will come next, you tend to flee to the safest place'.
Japan's Nikkei index plunged 9.60 per cent, ending below the key 8,000-point level for the first time in more than five years as the yen soared and after a profit warning from tech giant Sony.
South Korean shares dived 10.6 per cent - a day after a 7.4 per cent plunge - after the domestic economy grew at its slowest pace for four years and Samsung Electronics reported a sharp drop in quarterly profit.
'The market seems to be still in panic,' Mr Lee Kyung Soo, from Taurus Investment & Securities, told Dow Jones Newswires in Seoul.
Sydney ended with a loss of 2.6 per cent, while Hong Kong was down nearly seven percent in the afternoon session.
The sell-off came as Asian leaders meeting in Beijing agreed to set up an US$80 billion (S$120.7 billion) fund to fight the global economic crisis.
The deal between South Korea, China, Japan and the 10 members of the Association of South-east Asian Nations is the first major coordinated regional action since the full force of the financial turmoil erupted last month.
In Australia, three big investment firms said they had frozen at least 3.66 billion US dollars' worth of investors' funds to stem an exodus sparked by a government deposit guarantee.
The rout supported the yen, particularly against higher-yielding currencies such as the euro, the Australian dollar and the British pound.
The dollar fell to 95.32 yen, its weakest since August 1995.
The euro slipped below 123 yen for the first time in almost six years as investors unwound risky bets funded with cheap Japanese credit.
The stronger currency is bad news for exporters such as Sony, which warned it now expects its annual profits to drop by more than half.
Governments around the world have pumped cash into the banking system in recent weeks to try to contain what former Federal Reserve chairman Alan Greenspan described on Thursday as a 'once-in-a-century credit tsunami'.
While there have been some tentative signs of an easing of the credit crunch, concerns are growing about the worsening outlook for economic growth and corporate earnings.
'The theme of weaker global growth has replaced the issue of troubled banks for now and continues to weigh on investor psyches', said analysts at UBS.
Wall Street's share indexes closed mostly higher on Thursday in a volatile session.
'But it was only a marginal gain after massive selling. The direction of global markets has not changed', said Mr Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking in Tokyo.
In Latin America, the stock market in the region's biggest economy, Brazil, closed 3.57 per cent lower, extending Wednesday's loss of more than 10 per cent.
KUALA LUMPUR
Malaysian stocks slumped 3.6 per cent on Friday on foreign selling triggered by weaker regional bourses and a decline in commodity prices, dealers said.
The Kuala Lumpur Composite Index shed 32.21 points to 859.11.
HONG KONG
Hong Kong share prices closed 8.3 per cent down on Friday to its lowest level in four years, as investors dumped their stocks in panic over fears of a global recession, dealers said.
The benchmark Hang Seng Index plunged 1,142.11 points to 12,618.38.
Turnover was 56.14 billion Hong Kong dollars (S$10.86 billion).
Many financial stocks plunged about 10 per cent on concerns over slowing growth in emerging markets. Heavyweight HSBC nosedived 12.52 per cent, while Bank of East Asia dropped 10.96 per cent.
SHANGHAI
Chinese share prices closed down 1.92 per cent on Friday as pessimism surrounding the earnings outlook for property developers and financial companies dragged down the market, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, was down 35.94 points at 1,839.62 on turnover of 31.7 billion yuan (S$6.9 billion).
The Shanghai A-share index fell 37.69 points, or 1.91 per cent, to 1,932.37 on turnover of 31.6 billion yuan, while the Shenzhen A-share index lost 8.99 points, or 1.66 per cent, to 531.72 on turnover of 12.5 billion yuan.
SEOUL
South Korean shares closed 10.6 per cent lower on Friday, with extended losses in big exporters amid general gloom about the state of the world economy.
The Kospi index ended down 110.96 points at 938.75, the lowest figure since May 2005.
The won ended at its lowest against the dollar since June 1998. It was 1,424 to the US unit compared to 1,408.8 at the close on Thursday.
TOKYO
Japan's Nikkei stock index plunged 9.60 per cent on Friday, ending below the key 8,000-point level for the first time in more than five years as worries grew about weak corporate earnings.
Investors dumped stocks after the yen struck a 13-year high against the US dollar and a six year peak against the euro, darkening the outlook for exporters.
A profit-warning from tech giant Sony added to the gloomy mood.
The Nikkei-225 index lost 811.90 points to close at 7,649.08, the lowest level since April 28, 2003. -- AFP, BERNAMA, THOMSON REUTERS
Read also:
Nikkei sinks to 5-yr low
http://www.straitstimes.com/Breaking+News/Money/Story/STIStory_294313.html
