Asian markets on their knees as yen, Wall St. fall<\/p>\n
SINGAPORE (Reuters): Asian markets took a hammering yesterday
\nas a hefty fall on Wall Street and a weakening yen added to a
\ncocktail of domestic woes.<\/p>\n
Hong Kong shares led the rout with the Hang Seng Index
\ncollapsing nearly 500 points, or 5.26 percent, to close below the
\n9,000 mark as traders faced up to a possible economic recession
\nin the territory.<\/p>\n
Tokyo shares fell 1.4 percent, and stocks in Indonesia and
\nThailand plunged around four percent. Regional currencies avoided
\nbig losses but dealers said they were under growing pressure from
\nthe yen's fall and faltering domestic economies.<\/p>\n
The only major Asian bourse to close higher was Seoul, but
\ntraders said the small gain was merely a technical rebound after
\nmassive losses earlier this week.<\/p>\n
Hong Kong stocks went into freefall from the opening as
\ntraders reacted to a warning by Chief Executive Tung Chee Hwa
\nthat the territory might post negative economic growth, brokers
\nsaid.<\/p>\n
The blue chip Hang Seng Index saw early falls accelerate on
\nthe back of Wall Street's overnight drop and weak regional
\nsentiment to close at 8,983.43, its lowest close in four months.<\/p>\n
"There is no support. The next level is 8,800 and whether it
\ncan hold or not, we have to wait and see how Wall Street performs
\ntonight," said Alex Tang, head of research at Core Pacific
\nYamaichi International.<\/p>\n
Brokers in Tokyo said dealers who had recently built long
\npositions on expectations of a recovery in the Japanese stock
\nmarket unloaded their holdings as the regional mood turned sour
\nagain.<\/p>\n
The Nikkei 225 average closed 220.53 points, or 1.39 percent,
\nlower at 15,664.29.<\/p>\n
"There is no fresh selling factor, but the yen's weakness,
\nstrong bonds and the drop in Wall Street stocks overnight have
\nmade investors unwilling to buy shares," a trader at a second-
\ntier brokerage said.<\/p>\n
On Tuesday, the Dow Jones Industrials slid 150.71 points, or
\n1.65 percent, to close at 8,963.73 on worries over the earnings
\nof U.S. multinational companies.<\/p>\n
The dollar was hovering around seven-year highs around 138 yen
\nin late Tokyo trade. Despite a rebound in earlier trade, dealers
\nsaid the yen -- and with it most Asian currencies -- were likely
\nto remain under pressure.<\/p>\n
Investors worry that the weakening yen will hit exports from
\ncrisis-hit Asian nations and suck the region into another spiral
\nof currency devaluations.<\/p>\n
Shares in Seoul remained blighted by worries about nationwide
\nstrikes, but late bargain-hunting by some investors after two
\ndays of heavy losses helped the main index higher.<\/p>\n
The Korea Stock Exchange composite price index ended 1.49
\npoints, or 0.48 percent, higher at 313.48 after having fallen
\nmore than three percent.<\/p>\n
Sentiment was given a mild boost after Finance Minister Lee
\nKyu-sung said the government would study steps to support the
\nmarket, dealers said. But they said the mood remained
\npessimistic, thanks to the weak yen and labor unrest at home.<\/p>\n
Other Asian stock indices in the firing line were Singapore,
\ndown 1.31 percent at 1295.53; Malaysia, down 1.60 percent at
\n552.28; the Philippines, off 2.33 percent at 2,060.14; and
\nTaiwan, down 1.35 percent at 8,068.17.<\/p>\n
Australian stocks ended down 1.74 percent at 2,686.4 points in
\nlate business.<\/p>\n
Thai stocks had a particularly rough time as foreign investors
\ndumped local stocks, traders said. The SET index closed down 4.07
\npercent at 340.12.<\/p>\n
Sentiment in South Asia was little better. Indian stocks were
\ndown nearly three percent in afternoon trade and Pakistani shares
\nslumped around five percent.<\/p>",
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