WORLD> Asia-Pacific
|
WORLD> Asia-Pacific
|
|
Asian markets plunge on fears crisis is spreading
(Agencies)
Updated: 2008-10-06 15:57 Such concerns overshadowed any investor optimism over the US House of Representatives' approval Friday of a massive bailout plan that will allow the US government to buy distressed mortgages and securities backed by mortgages from banks and other financial institutions. Investors questioned how long it would take for the package to unfreeze credit markets, restore bank lending and generally shore up the US economy. "The market had already figured in the package's passage," said Yukio Takahashi at Shinko Securities Co. in Tokyo. "There are strong doubts about its implementation." Japanese financial companies and industries dependent on exports, such as steel, were especially hard hit Monday. Nippon Steel Corp. stock tumbled 9.8 percent, while Mizuho Financial Group was down 8.3 percent in morning trading. Trading in Chinese mainland resumed after a weeklong holiday break with the benchmark Shanghai Composite Index closed at 2,173.74 points on Monday, down 120.04 points, or 5.23 percent, from the previous close. US stock index futures were more than 1 percent lower, suggesting Wall Street would open lower Monday. The Dow Jones industrial average fell 157.47, or 1.5 percent, to 10,325.38 on Friday. In currencies, the euro slid to US$1.3618 from US$1.3774 late Friday. But the dollar was weaker against the yen, falling to 103.11 from 105.30 yen late Friday. Oil prices tumbled on speculation that slower global growth will cut crude demand. Light, sweet crude for November delivery was down US$1.85 to US$92.03 a barrel in Asian electronic trading on the New York Mercantile Exchange. |
