Asian stocks down over concern abroad
Asian stocks down over concern abroad
HONG KONG (Reuter): Asian stocks headed lower yesterday as Tokyo shares posted their second largest drop this year, with traders uncertain about the direction Europe and New York would take overnight.
The key Nikkei 225-average dropped 470.66 points, or 2.19 percent, to 21,005.63.
The close was the lowest since March 15, when it ended at 20,915.44 and the biggest drop since Feb. 27, when the 225 lost 479.87 points.
Hong Kong's Heng Seng Index dropped 47.01 points, or 0.43 percent, to 10,798.29.
Traders noted that markets in Hong Kong and Tokyo were brought down by heavy futures selling and thin volumes.
They attributed part of the selling in futures to worries about the outlook for Wall Street and interest rates.
"There was pretty heaving selling in the futures. Futures are trading at a pretty heavy discount," said one Hong Kong trader.
"The mood is very bad and turnover will stay very small," said Akihiro Naemura, an analyst at Okasan Securities in Tokyo.
Singapore shares lost 1.31 percent, shedding 28.78 points to 2,174.06 amid concern over the economic implications of a drop in non-oil exports.
The Kuala Lumpur Stock Exchange Composite Index fell 14.43 points, or 1.28 percent, to 1,111.97.
Thai stocks fell 1.54 percent or 18.19 points to close at a 15-month low of 1164.19 on foreign selling of blue-chip bank and finance stocks.
Korean stocks finished down 1.30 points at a provisional 838.75 as investors took profits in blue chip stocks and switched to small cap stocks.
Australia's All Ordinaries Index was down 5.2 points at 2,152.4.
Indian stocks were volatile most of the day ahead of the federal budget and in a special trading session which began shortly before the finance minister began his speech.
The Bombay Stock Exchange index was up 14.30 points as the minister began speaking but then quickly reversed and at 1221 GMT was down nearly 25 points at 3772.88.
The Financial Times-Stock Exchange index of 100 leading British shares had fallen 22.1 points to 3,688.2.
In Paris, the CAC-40 share index dropped 17.37 to 1,975.46.
The 30-share DAX index in Frankfurt was down 38.55 at 2,481.64.
In New York, Wall Street stocks opened lower yesterday as the market followed through on Friday's weakness.
Traders said all eyes were on Microsoft, due to report fiscal fourth quarter results after the close.
The Dow Industrials was off seven points at 5,420 in early trade. The NASDAQ Index was off one at 1,096, while the S&P Index was off fractionally at 638.