Alexa
  • Directory of Taiwan

Asian markets slide on U.S. credit worries

Asian markets slide on U.S. credit worries

Asian shares dipped in Wednesday morning trading, unable to shake off the global jitters about the possible damage a U.S. credit crunch might bring to financial markets.
The Nikkei, the benchmark for Tokyo stocks, lost 1.6 percent to 16,577.39 in the morning session, taking its cue from a further slide on Wall Street overnight.
In Hong Kong, the blue chip Hang Seng Index lost 2.7 percent in morning trade to 21,407.35.
Meanwhile, in New Zealand, the NZX-50 fell to its lowest level this year, dropping as much as 1.7 percent to 3998.59 during the day.
Traders in Tokyo said bargain-hunting there may keep Japanese stocks from plunging too much. Some analysts also say market sentiment in Tokyo remains upbeat as worries about subprime mortgages in the U.S. may make it less likely the Bank of Japan will raise interest rates later in the month.
But the market remains uncertain, with investors unsure just how much Japan is at risk over the U.S. subprime mortgage crisis.
UBS broker Campbell Stuart in New Zealand agreed a a general tone of uncertainty was pervading markets.
"This whole credit fear is not fully understood by everyone, so as a consequence most people are pretty jittery about everything," he said.
Worse still, fears are growing about the future of the overall U.S. economy. On Tuesday, U.S. retailers announced lower profit forecasts, including Wal-Mart Stores Inc. and Home Depot Inc.
Overnight in the U.S., the Dow shed 1.57 percent to 13,028.92, on the verge of falling below the psychologically important 13,000 mark, which it first crossed in late April.
Wednesday in Asia midday, Indonesia shares were down 4.3 percent, Taiwan shares were down 3.5 percent, and Philippine shares were down 4.1 percent.


Updated : 2021-10-19 23:47 GMT+08:00