Source : The Straits Times, Nov 2, 2007
HONG KONG - ASIAN stocks suffered heavy losses Friday, mirroring sharp falls on other global markets amid fears that the fallout from the US subprime loan crisis is far from over.
Markets around the region fell by as much as three percent after drops in New York and Europe, as renewed worries about the fallout from US mortgage and credit woes erased earlier euphoria over a Federal Reserve interest rate cut.
US falls came after oil giant ExxonMobil missed Wall Street profit forecasts and analysts at CIBC World Markets downgraded Citigroup and Bank of America, the two biggest US banks, on worries about a credit squeeze.
CIBC said Citigroup needed to raise US$30 billion(S$ 43.5 billion) in capital over the near-term, also dampening the market sentiment.
Signs that major US banks may be more severely affected by the subprime loan crisis than previously expected took a heavy toll on financial stocks.
A surge in crude oil prices above US$96 dollars a barrel for the first time Thursday only added to the market's nervousness despite a later pullback.
TOKYO
Japanese share prices closed down 2.09 per cent on Friday, hit by heavy losses on Wall Street as investors fretted that the fallout from recent credit market turmoil is far from over, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped 352.92 points to 16,517.48, reflecting sharp falls across Asia.
The broader Topix index of all first-section shares fell 35.61 points or 2.18 percent to 1,600.17.
HONG KONG
Hong Kong share prices closed sharply lower Friday, down 3.3 per cent, as steep falls on Wall Street prompted investors to sell-down the benchmark index, dealers said.
The Hang Seng Index ended the day's trading 1,024.54 points down at 30,468.34.
SHANGHAI
Chinese share prices closed sharply lower Friday, losing 2.31 per cent amid heightened concerns that another multi-billion dollar public offering will again tie up market funds, dealers said.
China's securities regulator said Friday it would review China Railway Engineering Corp's initial public offering (IPO) plan on Nov 5, the latest in a slew of firms seeking to tap the stock markets for funds.
The Shanghai Composite Index, which covers both A and B shares, closed down 136.48 points or 2.31 per cent at 5,777.81 on turnover of 106.03 billion yuan (S$20.2 billion).
KUALA LUMPUR
Malaysian share prices closed down 0.8 per cent on Friday after a steep sell-off in New York on concerns for the US economy and amid historically high oil prices, dealers said.
But, they added, the key index managed to end off its lows on a rebound in plantation stocks and resilience in small caps.
The Kuala Lumpur Composite Index closed down 11.68 points at 1,397.48, off a low of 1,385.85. -- REUTERS, AFP
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