Asian stocks plunge after Wall Street drop

Asian stocks plunge after Wall Street drop

SINGAPORE (AFP): Investors across the Asia-Pacific dumped
shares yesterday after being spooked by the steep plunge in Wall
Street and the specter of war in the Taiwan Straits.

Nerves calmed toward the end of trading, but traders said
market sentiment will depend on how Wall Street performs when it
reopens after the Dow Jones Industrial Average dropped a steep
171 points or three percent last Friday.

This plus Chinese missile tests off Taiwan and news that a US
aircraft carrier was steaming toward the region jarred Asian
investors and set off the biggest drops in recent years in some
markets.

Local factors contributed to dampen investor sentiment.

"If Wall Street holds steady tonight then we might see a
rebound," said Christopher Chong, director of research at Kay
Hian-James Capel Pte. Ltd. in Singapore.

Hong Kong share prices closed 7.3 percent down after panic-
selling sent the Hang Seng index plummeting 820.34 points to
10,397.45 despite a slight rally in afternoon trading.

"You are seeing the effect of the China-Taiwan problems," Ian
Perkin, assistant director of the Hong Kong General Chamber of
Commerce said.

Ironically, Hong Kong suffered much more than the Taipei
bourse, where share prices fell 2.0 percent as nervous investors
dumped stocks on the eve of another round of Chinese military
exercise off the island's coast.

The Taiwan Stock Exchange weighted price index fell 98.08
points to 4,711. 43. The nosedive in Hong Kong also dampened
market sentiment in Taipei and accelerated the downturn toward
the end of the session, a dealer said.

Japanese share prices plunged 1.8 percent on selling of both
stocks and futures following the Wall Street slump. The Nikkei
stock average dropped 359. 58 points to finish at 19,796.29.

In Singapore, the Straits Times Industrials (STI) index fell
more than 106 points or over four percent by mid-afternoon before
recovering. Lower than expected company results, especially from
the banking sector, helped set off the tumble.

Even the Shanghai Stock Exchange composite index fell 0.9
percent or 5.01 points to 568.12 points Monday.

"We heard there was an announcement by the People's Liberation
Army on the missile exercise. That brought the Hong Kong and
Taipei markets down and affected the Shanghai market," said Cui
Feng, an analyst with Shanghai Guotai Securities company.

The Australian Stock Exchange's key indicator, the all
ordinaries, fell 80.2 points to close at 2,187.4, its lowest
biggest one-day fall in four years.

Philippine share prices plunged 2.3 percent on selling
triggered by a slump on Wall Street. The Philippine Stock
Exchange index fell 66.14 points to 2,810.65.

Malaysian share prices plunged 3.4 percent by the midday
break. The Kuala Lumpur Stock Exchange's 100-share weighted
composite index tumbled 37.65 points to 1,078.45, erasing gains
made last week.

Share prices plunged 1.8 percent on the Korea Stock Exchange
as investors withdrew to the sidelines amid delays in government
measures to boost the bourse, dealers said. The composite price
index closed 15.37 points lower at 848.26.

The Stock Exchange of Thailand (SET) index slumped 48.76
points to close the morning session at 1,260.21 points.