Asian Markets Fall Sharply
Monday November 12, 4:04 am ET
By Chisaki Watanabe, Associated Press Writer
Asian Markets Fall Sharply on Further Subprime Worries, Wall Street's Drop Friday
TOKYO (AP) -- Asian markets fell sharply Monday as traders took their cues from Wall Street, where shares dropped Friday amid renewed concerns about U.S. mortgage problems.
Hong Kong's benchmark index declined as much as 4.6 percent, while Japan's main index lost as much as 3.8 percent and South Korea's Kospi fell as much as 4.5 percent.
"Basically, the supbrime loan issue still drags on, and there is no prospect of what can end the problem," said Shinichi Ichikawa, chief strategist at Credit Suisse.
"As for the U.S. economy, the risk of recession is increasing toward the next year," which, combined with higher oil prices, prompts players to sell the dollar, he said.
On Friday, the Dow Jones industrial average fell 1.7 percent after major banks warned of further losses in their debt portfolios, raising investor concerns that the credit market slump shows no sign of abat
Japanese traders on Monday sold exporter issues on a strengthening yen, which is at its highest levels against the dollar since May 2006.
Automaker Honda fell 3.58 percent and rival Toyota shed 2.76 percent. Sony dropped 2.61 percent.
At the close, Japan's benchmark Nikkei 225 index was at 15,197.09 points, down 2.48 percent. It dipped as low as 14,998.51 points during the session, its first time below 15,000 since July 2006.
Meanwhile, Hong Kong's Hang Seng Index was down 3.7 percent at 27,724.07 in afternoon trade after dropping to as low as 27,468.00 during the early session.
Bank HSBC shed 3.2 percent to HK$136.50 on subprime exposure woes.
Chinese financial shares also were lower after China's central bank raised the reserve requirement for banks by 50 basis points to 13.5 percent at the weekend.
Bank of China was down 3.46 percent at HK$4.47. China Construction Bank fell 3.95 percent to HK$7.54.
In Seoul, the Korea Composite Stock Price Index, or Kospi, fell 67 points, or 3.4 percent, to close at 1,923.42 in afternoon trading. The index had declined as much as 4.5 percent earlier.
Steelmaker Posco fell 4.1 percent to 562,000 won. Hyundai Heavy Industries Co., the world's biggest shipbuilder, fell 4.1 percent to 481,000 won. Samsung Electronics Co., South Korea's largest corporation, declined 2.2 percent to 528,000 won.
In Tokyo currencies, the dollar was trading at 110.34 yen at 2:50 p.m. Monday, down from 111.07 yen late Friday in New York. The euro fell to $1.4634 from $1.4673.
Escrito por SALSFI às 07h29
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