Asian stocks dive anew on U.S. recession fears

NF Reporter · 01-18-2008, 02:06 AM

Reuters - Asian stocks tumbled anew on Friday after the latest salvo of sour signals about the U.S. economy pummeled Wall Street, sending the benchmark S&P 500 (.SPX) down 3 percent to a 15-month nadir.

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waltky · 01-22-2008, 04:11 AM

Global market plunge continues...

Plunge in World Stock Prices Continues in Early Asian Trading
22 January 2008 - Stock prices in Asia and Australia fell sharply Tuesday following Monday's decline in shares worldwide on fears of a U.S. recession.

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Share prices fell nearly 10 percent in India shortly after the market opened, forcing a brief suspension in trading. Prices also tumbled in South Korea, Hong Kong, Japan, Singapore and China. Stock prices dropped Monday between three and seven percent in major European, Asian and Latin American markets in some of the biggest single-day losses in years.

Billionaire American investor and philanthropist George Soros warned Monday that the world is facing its most serious financial crisis since World War II. The head of the International Monetary Fund, Dominique Strauss-Kahn, called the situation "serious," and said all countries in the developed world are suffering from the slowdown in growth in the United States.

U.S. markets were closed Monday for a national holiday, but stock futures trading indicates further losses are expected when markets re-open today. President Bush has proposed a $145 billion stimulus plan to prevent a recession. But Strauss-Kahn said falling foreign markets are evidence that investors are skeptical about the plan's potential for success.

U.S. stocks have dropped in recent weeks over worries about tightening credit, high levels of consumer debt, soaring oil prices, and sinking real estate markets. Mr. Bush's stimulus package would lower taxes to encourage consumer spending to try to prevent a recession - defined as a broad decline in a nation's economy over a period of at least six months.

VOA News - Plunge in World Stock Prices Continues in Asia, Europe

bizwiz · 01-22-2008, 07:17 AM

This is scary. I just bought some stocks that I thought was a great deal last week. I lost nearly 25% of their value just for today. I hope it bottoms out soon.

waltky · 01-28-2008, 10:19 PM

Still bottoming out...

Asian Markets Record Big Losses
Jan 28, 2008 - Stockmarkets fall amid continuing anxiety over world economic outlook.

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Asian stocks tumbled Monday as traders took their cues from Wall Street, where persistent worries about a possible U.S. recession sent shares sinking Friday. India's benchmark stock index dropped 4 percent in the first 10 minutes of trading and Hong Kong's market slid 4.7 percent by midday. U.S. stock index futures also were down, suggesting that shares could drop again when the market opens in New York.

Investors around the world have been jittery for weeks about a U.S. slump, which would likely weaken demand for exports and drag on global growth. There is also concern about a worldwide credit crunch triggered by rising defaults in risky U.S. mortgages, which has led to mountains of bad assets at major American and European banks. Japan's benchmark Nikkei 225 index was down 3.6 percent, erasing much of its 4.1 percent jump from Friday. In mainland China, the Shanghai Composite Index was down 5.5 percent. Markets in South Korea, Thailand and Taiwan also declined.

"There's a lot of uncertainty out there: uncertainty over the U.S. economy, uncertainty over China's economy," said Rob Hart, an analyst with Morgan Stanley in Hong Kong. "People are also worried about contagion in Europe. If the U.S slows down, will it trigger a slowdown in Europe?" he said. European stocks fell slightly Friday amid ongoing speculation about potential problems in the banking sector. Last week was a tumultuous one for global markets, and it appeared the turmoil would continue.

More ABC News: Asian Markets Record Big Losses

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China's main stock index falls 7.19 percent
January 29, 2008: China's main stock index fell 7.19 percent on Monday, its fourth biggest drop this decade, because of sliding global markets and heavy snow across central and eastern China that is disrupting food and energy supplies.

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The index, the Shanghai composite, closed at a five-month low of 4,419.294 points, near its intraday low of 4,409.079. That left it 28 percent below its record intraday high, hit in October. Losing Shanghai stocks overwhelmed gainers by 819 to 45. Shares elsewhere in Asia fell, though not as sharply as in Shanghai. The MSCI index of Asia-Pacific stocks excluding Japan had fallen 3.4 percent by evening in Tokyo.

Tumbling stock markets abroad dragged down China's market because of high Chinese valuations. The domestic A-share prices of dual-listed firms still enjoy an average premium of about 80 percent over their Hong Kong-listed H shares. While investors largely ignored such premiums when the market was strong last year, premiums have become a preoccupation of fund managers in the market's current nervous mood.

"Weakness in overseas markets, especially Hong Kong, makes China's excessive stock valuations unsustainable," said Zhou Guangshan, analyst at Guotai Fund Management, who expects the index to fall to 4,000 points or lower. And while the weather is generally not expected to have a long-term impact on the economy or policy, analysts fear it could ensure a spike of inflation to 11-year highs in January and February, complicating the authorities' efforts to bring it under control through tighter policy.

More China's main stock index falls 7.19 percent - International Herald Tribune

waltky · 01-31-2008, 12:48 AM

China hopin' we go under...

Why China is rooting for a US slowdown
28 Jan. 2008 - In search of a soft landing, Beijing raised interest rates six times last year and let the yuan climb 13% against the dollar. But another year of overheated economic growth is likely in 2008.

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In China, some people might be looking forward to a U.S. slowdown. That's because an American recession could do what Beijing has not been able to accomplish -- namely, cool off China's overheated economy, which in 2007 grew at its fastest pace in 13 years. China's economy expanded 11.4% in 2007, government officials announced Jan. 24. "China tried to achieve a soft landing but was not able to," says Qing Wang, an economist with Morgan Stanley (MS, news, msgs). "In 2008, China may be able to mainly because of a (possible) U.S. recession."

Since last summer, China's economy has been growing at a slower pace due to weaker demand from Americans for "made in China" imports. The world's fourth-largest economy grew 11.9% in the second quarter, 11.5% in the third quarter and 11.2% in the fourth quarter. Tao Wang, an economist in Beijing with Bank of America (BAC, news, msgs), expects China's economy to grow around 10% in 2008. "We'll probably see export growth start to slow down," Wang said.

The People's Bank of China, the country's central bank, has been tightening monetary policy to try to tame inflation and curb the overheated economy, with little success. The consumer price index rose 4.8% in 2007, above the government's 3% target. The central bank responded by raising interest rates six times last year, bringing the benchmark one-year deposit rate to 4.14%. It also jacked up banks' reserve ratios to the highest level in two decades.

Not a lot of options

waltky · 01-31-2008, 10:55 PM

Wonder who they sold the losses to?...

Japanese banks shed 529 billion yen in subprime losses
Thursday 31st January, 2008 - Japan's biggest banks have shocked the country by quadrupling the losses they suffered as a result of the U.S. subprime mortgage crisis.

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Losses to the end of December now total JPY 529.1 billion, 4.6 times the JPY 115 billion they reported for the September quarter.

The banks, in their December 31 quarterly reports said the losses could grow, by as much as another 100 billion yen.

The country's six major banking groups were so badly affected by the crisis that all reported markedly lower profits for the nine months to December 31. The banks' combined net profit tumbled 44.2% to JPY 1.339 trillion.

Japanese banks shed 529 billion yen in subprime losses

waltky · 02-06-2008, 03:44 AM

Looks like the bubble is bursting...

Asian stock markets plummet
Tues., Feb. 5, 2008 - Drops in Tokyo, Hong Kong exchanges follow steep Wall Street declines

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Asian markets plunged Wednesday after a steep drop on Wall Street overnight fanned investors’ fears the U.S. economy was sliding into a recession that would sap demand for Asian exports. In Hong Kong, the benchmark index plunged more than 6 percent in morning trading, while Japan’s Nikkei 225 index sank more than 4 percent. “It’s unbridled pessimism,” said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong. “Everyone is concentrating on U.S. recession, but Europe is also looking bad. ... We are in for a bear market now.”

Economic data Tuesday showing the U.S. service sector shrank last month for the first time since March 2003 wiped out nascent optimism about the American economy that had lifted global markets last week. The news sent the Dow Jones industrial average plunging 370 points, or 2.93 percent, its largest one-day percentage drop since Feb. 27, 2007. Asian markets have dropped sharply from the beginning of the year amid worries about a U.S. — and global — slowdown. Many stocks rebounded some over the last two weeks after the U.S. Federal Reserve made two big interest rate cuts to shore up the weakening American economy.

But pessimism returned after the Institute for Supply Management reported Tuesday that its index of activity in the U.S. service sector, which accounts for about two-thirds of the economy there, dropped below 50, indicating contraction. It was the first time the service sector reading has contracted since March 2003. European markets also sank Tuesday in reaction to the news, with the U.K.’s FTSE 100 Index sliding 2.6 percent and France’s CAC-40 Index tumbling 4 percent. Asian investors also appeared increasingly anxious about a slump in Europe, another vital export market.

More Asian stock markets plummet - World business - MSNBC.com

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Asian Markets Tank After Wall Street Drop
Feb. 6, 2008 - Hong Kong's Benchmark Index And Japan's Nikkei Plunge Amid U.S. Recession Worries

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Asian markets plunged Wednesday after a steep drop on Wall Street overnight fanned investors' fears the U.S. economy was sliding into a recession that would sap demand for Asian exports. In Hong Kong, the benchmark Hang Seng index plunged 1,339.24 points, or 5.4 percent, to close the half-day session at 23,469.46. Japan's Nikkei 225 index tumbled 4.7 percent to 13,099.24. "It's unbridled pessimism," said Francis Lun, general manager at Fulbright Securities Ltd. in Hong Kong. "Everyone is concentrating on a U.S. recession, but Europe is also looking bad.... We are in for a bear market now."

Investors were unnerved by economic data Tuesday showing the U.S. service sector shrank last month for the first time since March 2003. That seemed to wipe out some renewed optimism about the American economy after the U.S. Federal Reserve's two big rate cuts late last month, which gave many markets a lift. The Institute for Supply Management reported that its December index of activity in the U.S. service sector, which accounts for about two-thirds of the economy there, dropped below 50, indicating contraction. That sent the Dow Jones industrial average plunging 2.93 percent, its largest one-day percentage drop since Feb. 27, 2007.

There's really nothing like a recession-proof job, reports CBS News correspondent Thalia Assuras, but there are options out there that provide more opportunities than others. Global financial markets have turbulent since the start of the year, mostly tumbling amid worries about a U.S. - and worldwide - slowdown and massive losses racked up by banks that made bad bets on securities backed by risky mortgages. Asian investors appeared increasingly anxious about a slump in Europe, another vital export market that appears to be slowing. "There's a real probability that both the U.S. and Europe will go into recession at the same time," said Lun. "It's a financial mess on the two continents with the subprime crisis and the SocGen debacle."

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waltky · 02-08-2008, 08:17 PM

Yea, an' Granny's chopstick stocks tanked too...

China Stock Market Looses Over US$715 Billion
Feb 08, 2008 - Over 5 trillion yuan (approximately US$715 billion) in market value evaporated in a single month on China's stock market.

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Affected by the prolonged snowstorm disaster and the U.S. subprime mortgage crisis, mainland China's stock market experienced a "black January." Over 5.14 trillion yuan (approximately US$715 billion) of "A" share(1) values evaporated in a month. This is equivalent to one fifth of China's 2007 GDP. The same occurred to the chief executives of various listed companies. Liu Yonghao, the richest man from China's southwestern Sichuan Province, suffered a loss of 1.1 billion yuan (approximately US$153 million).

The West China Metropolitan compiled the January statistics of the market prices of several listed companies and discovered that most of the rich and powerful Sichuan investors/executives suffered great losses on both the Hong Kong and mainland stock exchanges. Another example, The "King of Coke"(2) from Sichuan Province, Sian Yang, lost 600 million yuan (approximately US$83 million) since the company was first listed on the Hong Kong Stock Market in September 2007.

Jin Xianyu and Gao Daming, two major share holders of the largest pork production enterprise in Sichuan, Suining Gaojin Food Co., Ltd., also lost 260 million yuan (approximately US$36 million) and 770 million yuan (approximately US$107 million) respectively.

More Epoch Times | China Stock Market Loses Over US$715 Billion

waltky · 03-03-2008, 11:43 PM

Asian stocks down again...

Asia Markets Tank On U.S. Recession Fears
March 3, 2008 - Apart From China, Where Shares Advance Against Trend, Gloomy U.S. Friday Haunts Markets

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Most Asian markets tumbled Monday as investors reacted nervously to a steep decline on Wall Street Friday after disappointing economic and corporate news reawakened worries about a U.S. recession. Japan's Nikkei 225 index plunged 4.5 percent to close at 12,992.18, and India's benchmark stock index slid 5.3 percent. The Bombay Stock Exchange's 30-share Sensex index dropped more than 939 points to a provisional close of 16,639.54 points.

On the broader National Stock Exchange, the 50-company S&P Nifty index also slipped 279 points, or 5.4 percent, to 4,944 points. Markets in Hong Kong, South Korea and Australia also fell sharply. However, shares in mainland China advanced. Investors across much of the region dumped shares after a series of depressing economic and corporate reports Friday out of the United States - a vital export market for Asia - sent the Dow Jones industrial average falling 315.79, or 2.51 percent, to 12,266.39.

The bad news included poor quarterly results from American International Group Inc. and Dell Inc. and weaker-than-expected results on the Chicago purchasing managers index, which painted a dreary picture of the manufacturing sector. "It's all due to fears of a recession in the U.S.," said Craig James, chief equities economist at CommSec in Sydney, Australia.

The dollar's drop to a three-year low against the yen also weighed on sentiment in Tokyo as dollar weakness erodes overseas earnings at Japan's exporters. The greenback fell as low as 102.92 yen, its lowest point since January 2005. By mid-afternoon in Tokyo, the dollar bought 103.17 yen, down from 103.96 yen late Friday in New York. The euro also rose to $1.5215 from $1.5194.

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