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Asian shares down sharply on Wall Street decline

Asian shares down sharply on Wall Street decline

Asian markets dropped sharply Wednesday following a decline in U.S. shares overnight amid simmering concerns over global credit market turmoil and fears the U.S. Federal Reserve won't do enough to ease a credit crunch.
Japan's benchmark Nikkei 225 index had plunged 2.59 percent by the end of Tokyo's morning session, while benchmarks in South Korea and New Zealand lost as much as 3.1 percent and 1.4 percent, respectively, in morning trade Wednesday.
Major indices lost ground in China, Hong Kong, the Philippines, Singapore and Taiwan.
In New York Tuesday, the Dow Jones industrial average fell 280.28, or 2.10 percent, to 13,041.85, its biggest drop since Aug. 9.
U.S. stocks dropped as investors grew more uneasy about the U.S. economy and whether the U.S. Federal Reserve will take more steps to prevent a further spread of credit market problems.
In Japan, traders sold exporter issues on the weak dollar, which was trading at 114.06 yen midmorning, down from 114.56 yen Tuesday in New York, as the renewed market volatility had investors backing away from risky yen-carry trades. To exit the trades, investors have to buy yen to repay cheap yen loans.
The stronger yen makes Japanese exports more expensive and less competitive overseas.
In South Korea, Samsung Electronics Co., the country's biggest corporation, fell 2.4 percent and Hyundai heavy Industries Co., the world's largest shipbuilder, declined 1.3 percent.
The Korea Composite Stock Price Index, or Kospi, has recovered slightly from its morning lows, and at midday is down 1.0 percent at 1,811.17. New Zealand's NZX-50 index is down 0.9 percent at 4,063.28.


Updated : 2021-03-09 02:51 GMT+08:00