HONG KONG: Asian stocks market dropped Friday, with benchmarks in Japan and Hong Kong sliding about 2 percent or more, after gnawing economic fears sent Wall Street tumbling to its lowest close in more than six years.
Investors found few reasons to wade into the market after the Dow Jones breached the levels it touched in November when the financial crisis sent global equities into a tailspin. The Dow’s miserable finish _ its worst since Oct. 9, 2002, when the last bear market hit bottom _ spurred fears the markets’ downturn is far from over. It also provided a clear sign that investors don’t see a quick end to the worst global slowdown in decades despite the unprecedented economic measures taken by governments around the world.
Japan’s Nikkei 225 stock average lost 141.27 points, or 1.9 percent, to 7,416.38, and Hong Kong’s Hang Seng dropped 324.59, or 2.5 percent, to 12,698.77. South Korea’s Kospi shed 3.7 percent to 1,065.80 as the country’s currency, the won, continued to lose ground against the dollar. In mainland China, Shanghai’s benchmark gained 1.5 percent after the government said it would aid light industry and petrochemical suppliers in its latest stimulus measures. That came as the governor of the central bank of Australia, its own economy heavily reliant on Chinese demand for commodities, said China’s economy has already bottomed.
Overnight in New York, investors unloaded financial heavy weights Bank of America and Citigroup amid concerns that banks will need even more capital to restore their health. The Dow lost 89.68, or 1.2 percent, to end at 7,465.95, with broader indices slipping as well. The Standard & Poor’s 500 index ended down 9.48, or 1.2 percent, to 778.94. The index finished above its Nov. 20 close of 752.44,which was its worst finish since April 1997. With U.S. futures lower, Wall Street was poised to drop further. Dow futures fell 58, or 0.8 percent, to 7,404 and S&P500 futures were down 7.3, or 0.9 percent, to 772.10.
source : jang.com.pk
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