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.