Asian stocks plunge after G-7 meeting

Asian stocks plunge after G-7 meeting

HONG KONG (AP): A finance officials meeting that failed to spell out a commitment to supporting the Japanese yen helped send the currency lower, setting off a sharp fall in most Asian stock and currency markets yesterday.

The falling yen sent share prices lower on the Tokyo Stock Exchange, with the benchmark Nikkei Stock Average of 225 selected issues falling 2.55 percent to close at 15,883.77 points.

On Wednesday, the finance ministers and central bankers from the Group of Seven industrialized nations released a joint communique, supporting Japan's efforts to stimulate domestic demand-led growth to correct "the excessive depreciation of the yen."

But they made no reference to direct intervention to prop up the yen.

An economic stimulus package the Japanese government announced last week was broadly seen as insufficient to turn the economy around.

"The G-7 betrayed expectations," said Yuji Nakagawa, a manager at the equity futures section of Toyo Securities. "There is a sense of despair."

In Hong Kong, share prices were also dragged down by Japan's weakening financial markets.

The blue-chip Hang Seng Index shed 1.6 percent, closing at 11,187.78.

Profit-taking on market heavyweight HSBC Holdings and weaker properties stocks also dragged down the index, traders said.

Bangkok

In Bangkok, a regional sell-off sparked by jitters over prospects for the yen and foreign profit-taking in blue chips also sent Thai stock prices lower, dealers said.

The Stock Exchange of Thailand index lost 3.25 percent from Friday's close to end at 431.63, after a five-day Thai New Year holiday.

In Seoul, the key index plunged 2.9 percent to 454.15 points on worries that there may be nationwide labor unrest after Kia Motors Corp.'s union went on strike, analysts said.

Meanwhile, shares on the Kuala Lumpur Stock Exchange also finished sharply lower as a controversial restructuring of Malaysian Airline System Bhd. hurt investor confidence further, dealers said.

The benchmark Composite Index plunged 2.4 percent to 629.34 points.

Dealers said investors also worried that more companies would follow the lead of the three companies threatened with liquidation in recent weeks.

In Manila, Philippine shares ended lower as concerns in the political, economic and corporate fronts continue to undermine investor interest, traders said. The key index closed down 1.2 percent at 2,184.55 points.

In Taipei, Taiwan shares ended lower on local investors' worries about earnings at local companies, analysts said. The main index fell 0.30 percent to 8,780.21.

In Singapore, shares closed sharply lower as the corporate outlook, reflected by Wednesday's rating downgrades on local banks and rising interbank rates, appears dim, dealers said. The benchmark index plummeted 1.9 percent to 1,515.15 points

In Australia, the key stock index closed at a record high on firmer miner and energy shares. The index closed up 0.4 percent at 2,881.4 points.

In New Zealand, the key stock index finished higher, with brokers saying forestry stocks and Telecom Corp. of New Zealand remained the main focus. It closed up 7.02 points at 2,335.02.