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.