Asian stocks plunge after Wall Street drop<\/p>\n
SINGAPORE (AFP): Investors across the Asia-Pacific dumped
\nshares yesterday after being spooked by the steep plunge in Wall
\nStreet and the specter of war in the Taiwan Straits.<\/p>\n
Nerves calmed toward the end of trading, but traders said
\nmarket sentiment will depend on how Wall Street performs when it
\nreopens after the Dow Jones Industrial Average dropped a steep
\n171 points or three percent last Friday.<\/p>\n
This plus Chinese missile tests off Taiwan and news that a US
\naircraft carrier was steaming toward the region jarred Asian
\ninvestors and set off the biggest drops in recent years in some
\nmarkets.<\/p>\n
Local factors contributed to dampen investor sentiment.<\/p>\n
"If Wall Street holds steady tonight then we might see a
\nrebound," said Christopher Chong, director of research at Kay
\nHian-James Capel Pte. Ltd. in Singapore.<\/p>\n
Hong Kong share prices closed 7.3 percent down after panic-
\nselling sent the Hang Seng index plummeting 820.34 points to
\n10,397.45 despite a slight rally in afternoon trading.<\/p>\n
"You are seeing the effect of the China-Taiwan problems," Ian
\nPerkin, assistant director of the Hong Kong General Chamber of
\nCommerce said.<\/p>\n
Ironically, Hong Kong suffered much more than the Taipei
\nbourse, where share prices fell 2.0 percent as nervous investors
\ndumped stocks on the eve of another round of Chinese military
\nexercise off the island's coast.<\/p>\n
The Taiwan Stock Exchange weighted price index fell 98.08
\npoints to 4,711. 43. The nosedive in Hong Kong also dampened
\nmarket sentiment in Taipei and accelerated the downturn toward
\nthe end of the session, a dealer said.<\/p>\n
Japanese share prices plunged 1.8 percent on selling of both
\nstocks and futures following the Wall Street slump. The Nikkei
\nstock average dropped 359. 58 points to finish at 19,796.29.<\/p>\n
In Singapore, the Straits Times Industrials (STI) index fell
\nmore than 106 points or over four percent by mid-afternoon before
\nrecovering. Lower than expected company results, especially from
\nthe banking sector, helped set off the tumble.<\/p>\n
Even the Shanghai Stock Exchange composite index fell 0.9
\npercent or 5.01 points to 568.12 points Monday.<\/p>\n
"We heard there was an announcement by the People's Liberation
\nArmy on the missile exercise. That brought the Hong Kong and
\nTaipei markets down and affected the Shanghai market," said Cui
\nFeng, an analyst with Shanghai Guotai Securities company.<\/p>\n
The Australian Stock Exchange's key indicator, the all
\nordinaries, fell 80.2 points to close at 2,187.4, its lowest
\nbiggest one-day fall in four years.<\/p>\n
Philippine share prices plunged 2.3 percent on selling
\ntriggered by a slump on Wall Street. The Philippine Stock
\nExchange index fell 66.14 points to 2,810.65.<\/p>\n
Malaysian share prices plunged 3.4 percent by the midday
\nbreak. The Kuala Lumpur Stock Exchange's 100-share weighted
\ncomposite index tumbled 37.65 points to 1,078.45, erasing gains
\nmade last week.<\/p>\n
Share prices plunged 1.8 percent on the Korea Stock Exchange
\nas investors withdrew to the sidelines amid delays in government
\nmeasures to boost the bourse, dealers said. The composite price
\nindex closed 15.37 points lower at 848.26.<\/p>\n
The Stock Exchange of Thailand (SET) index slumped 48.76
\npoints to close the morning session at 1,260.21 points.<\/p>",
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