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Asian stocks close sharply lower as rout continues

HONG KONG: Asian stocks extended sharp losses Monday, with India crashing out to a halt following another tumble in commodity prices on fears that inflation will inevitably lead to higher interest rates.

A steadier performance by Wall Street and a stronger US dollar had initially supported trade around the region but by early afternoon any lingering positive sentiment had abated and sellers again dominated trade. India was the stand out after crashing 10 percent and it recovered somewhat to close down 4.18 percent.

Tokyo slumped 1.84 percent and Seoul was down 2.46 percent while Hong Kong was down 3.11 percent. Elsewhere Bangkok was down 2.93 percent, Singapore down 2.5 percent, Jakarta by 6.03 percent and Kuala Lumpur fell by 2.1 percent.

TOKYO: Share prices fell sharply, with the benchmark Nikkei index ending below 16,000 points for the first time in over two months on concerns about higher US interest rates. Dealers said a weaker yen helped to contain losses somewhat but was not enough for the market to sustain an early rally which gave way to heavy profit-taking. The Nikkei-225 index dropped 297.58 points or 1.84 percent to 15,857.87. Volume was 1.91 billion shares, almost unchanged from 1.90 billion Friday.

The market had opened higher in tandem with a modest rally in US stocks on Friday and after the yen weakened, lifting exporters, but shares later plunged. Cosmo Oil dipped 35 yen to 585.

SEOUL: Share prices closed 2.46 percent lower, extending losses as foreign investors remained sellers on growing concerns about the prospects for the global economy. Dealers said sharp falls on regional markets unnerved investors clearly already unsettled by uncertainty over the outlook for US interest rates and the dollar, key issues for South Korea which depends largely on exports for growth.

The KOSPI index closed down 33.70 points at 1,338.59. Volume was 238 million shares worth 3.1 trillion won (3.28 billion dollars). Samsung Electronics fell 14,000 won to 624,000.

HONG KONG: Share prices fell 3.11 percent, with the main index plunging below the key 16,000 points level as jitters over sharp falls in the region prompted investors to step up selling in the afternoon session. The fall became the biggest one-day points drop since September 12, 2001 when the index fell 923.74 points after the terrorist attacks in the US the day before.

The Hang Seng Index closed down 507.84 points at 15,805.52. Turnover was 39.94 billion Hong Kong dollars (5.12 billion US). Zijin Mining lost 0.60 to 3.75.

SHANGHAI: Share prices closed slightly lower, with the tone cautious as the key index approached a two-year high after recent sustained gains.

Dealers said investors might have wanted to see how the latest government measures to cool the red-hot property market work out while the regional markets were all down sharply, extending losses.

The Shanghai A-share Index lost 1.69 points to 1,741.24 on turnover of 43.45 billion yuan (5.43 billion dollars) while the Shenzhen A-share Index was up 5.29 points or 1.24 percent at 430.76 on turnover of 23.15 billion yuan.

The benchmark Shanghai Composite Index, which covers A and B-shares, slipped 1.86 points or 0.11 percent at 1,657.69 on turnover of 43.70 billion yuan. Sinopec slipped 0.29 yuan to 6.73.

KUALA LUMPUR: Share prices closed 2.0 percent lower in line with losses in other regional markets and a sell-off in commodities. Dealers said sentiment was also undermined by the possibility of a fourth interest rate hike in six months as Bank Negara Malaysia held a monetary policy meeting.

The composite index shed 18.89 points to 925.51 on volume of 1.00 billion shares worth 1.53 billion ringgit (421 million dollars). Tenaga Nasional and Malayan Banking were both down 0.10 ringgit at 8.60 at 10.80 respectively.

JAKARTA: Share prices slumped 6.03 percent on another massive profit-taking binge by foreign investors amid a weakening rupiah and tumbling regional markets. Dealers said declines in world commodity prices drove down prominent mining stocks such as Bukit Asam, Bumi Resources and Antam.

The composite index closed down 83.945 points at 1,309.045 on volume of 3.24 billion shares valued at 2.85 trillion rupiah (311.47 million dollars). Decliners outnumbered advancers 159 to 4, with 31 stocks unchanged. Bank Mandiri shed 180 rupiah and closed at 1,690.

MUMBAI: Share prices recovered from a 10 percent plunge that halted trading for an hour to close down 4.18 percent as domestic funds helped prop the market.

Dealers said that statements by the central bank, the finance ministry and market regulator that any payment problems linked to the plunge would be handled by asking commercial banks, helped restore confidence.

The 30-share Mumbai stock exchange index closed down after it fell an intraday record 1,111.71 points to 9,826.9 before trading was halted for an hour in early market action.

The sharp fall raised some concern that investors who borrowed to buy shares, or bought stocks via futures contracts, in the past few months may have trouble making payments. AFP

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