Asian Market ends sharply lower

21 Jan 2009 | 16:42 Asian Market ends sharply lower
Stock markets in Asia ended sharply lower Wednesday, with financial stocks again taking the lead, as investors abandoned regional banking and insurance shares amid growing concerns over their earnings outlooks

In the commodity market, crude oil rose in New York as traders bought contracts to close out bets that prices would decline amid the global economic recession

Crude oil for March delivery rose as much as 66 cents, or 1.6%, to $41.50 a barrel in electronic trading on the New York Mercantile Exchange. It was at $40.66 a barrel at 9: 25 London time. Prices dropped 4.1% to $40.84 a barrel yesterday. The February contract expired yesterday and rose $2.23, or 6.1%, to $38.74 a barrel, the biggest gain since Dec. 31.

Brent crude oil for March settlement was at $43.39 a barrel, down 53 cents, on London's ICE Futures Europe exchange at 12:14 p.m. Singapore time. It declined 88 cents, or 2 percent, to end the session at $43.62 a barrel yesterday.

Coming back in equities, Japanese stock index Nikkei finished the session 2% lower, with banks and financials and property developers tanked as investor sentiment remain jittery about the health of overseas banks, while stronger yen against major currencies weighed on exporters and automakers. The Nikkei 225 Stock Average index retreated 164.15 points, or 2%, to 7,901.64, while the broader Topix fell 17.88 points, or 2.2%, to 787

In Mainland China, the Shanghai stock index snapped three days of winning streak to finish the session 0.5% lower, shrugged off morning gains as investors prompted to book profit amid cautious over gloomy outlook for global banking industry on following weakness in Wall Street overnight and other Asian market and ahead of the Spring Festival holiday. The benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, erased 9.09 points, or 0.5%, to 1,985.01.

In Hong Kong, stock markets endured loses for second consecutive day to finish the session 2.9% lower, weighed down by banks and financials and property developers on fresh concerns that the global banking crisis might be far from over, while metal and nonferrous stocks plunged on worries denting demand amid deepening global economy outlook and falling commodity prices. The Hang Seng Index plummeted 376.14 points, or 2.9%, to 12,583.63, off the day's high of 12,762.54 and low of 12,439.13.

The Australian stock market endured losses for second consecutive day to finish the session 1% lower, triggered by fresh concerns that the global banking crisis might be far from over. Banks and financials and property trusts led the decliners on anxiety over the health of overseas banks. Materials and resources tanked on falling commodity prices. The benchmark S&P/ASX200 tumbled 33.80 points, or 0.97%, to 3,442.8, while the broader All Ordinaries fell 30.20 points, or 0.88%, to 3,394.8.

Equities on the New Zealand stock market dipped in line with most of the Asian markets. The benchmark NZ index fell for the third time in a row. The benchmark NZX50 dipped 0.16% or 4.441 points to close at 2705.041. However, the NZX 15 inched forward 0.13% or 6.322 points to 4943.281

The news of RBS triggered fears among investor's across the world about banking stocks, dragging down the industry. To add to the already prevailing negativity, New Zealand's seasonally adjusted total retail sales were flat in the month of November 2008, increasing by less than 0.1% from October 2008, Statistics New Zealand said today. Continued volatility in motor vehicle retailing saw a rise of 6.9% ($37 million) in November, but this was more than offset by a fall in automotive fuel retailing of 7.3% ($44 million).

Stock markets in South Korea fell, with banks lower after they decided to extend credit lines to some troubled companies, but Daewoo Ship outperformed amid talk its planned sale to Hanwha Group had collapsed. Continued signs of trouble in the financial sector and worrisome economic data added to the grim. The Korea Composite Stock Price Index finished down 2.06% at 1,103.61 points, losing for a second consecutive session.

Stock markets in Philippines nose-dived more than 3%, reaching to one-month low level, tracking the overnight losses on Wall Street on fears of a deepening global economic downturn. The benchmark index PSEi plummeted 3.04% or 57.81 points to 1,840.12, the lowest level since 22 December 2008, while the all share index dived 2% or 24.59 points to 1,203.14.

Stock markets in Taiwan showed some act of recovery on Wednesday 21 January 2009, as market get ready for the Chinese lunar holidays. The stock market will closed from 22 January 2009 till 1 February 2009 on the account of Chinese Lunar year. The main Taiex share index increase marginally 5.36 points or 0.13% at 4,247.97 - recovering from yesterday's the lowest closing since 5 December 2008 when it closed at 4,242.61.

Stock markets in Singapore finished the session 1.1% lower, with losses in financials and property trusts as investor sentiment remain jittery about economic and financial health of global economy. The benchmark Straits Times Index erased 18.85 points, or 1.09%, to 1,704.52.

In India, a sell-off in late trade pulled Key benchmark indices to day's low in what was a global equities rout. Fresh worries the global banking crisis may last longer than expected rattled bourses across the globe. US president Barrack Obama's inaugural speech overnight failed to lift sentiments as investors appetite for risky equities waned. The BSE 30-share Sensex provisionally lost 364.11 points, or 4%, after staying in the red throughout the day in highly volatile trade.

As per the provisional figures, the BSE 30-share Sensex was down 364.11 points, or 4%, to 8,736.44. The Sensex fell 49.24 points at the day's high of 9,051.31 in early trade. The Sensex lost 365.62 points at the day's low of 8,734.93 in late trade. The S&P CNX Nifty fell 103.805 points, or 3.71%, to 2,692.80.

Elsewhere, Malaysia's Kula Lumpur Composite index was down 0.79% or 6.96 points to 873.414, while Indonesia's Jakarta composite decreased by 22.40 points or 1.69% to 1321.45. In Thailand, the Thai Stock exchange fell 1.96 points or 0.45% to 431.23.

In the other regional market, the financial sector was pummelled once again in Europe on Wednesday, with most lenders falling sharply as investors continued to fret that governments will be forced to step in and nationalize ailing lenders.

On a national level, the German DAX 30 index fell 1% to 4,195.53, the French CAC-40 index declined 1.6% to 2,879.02 and the U.K. FTSE 100 index lost 0.7% to 4,061.72.

Comments

Popular posts from this blog

Buy Mutual Fund Offline - Invest with Investorline

Buy Mutual Fund Online - Transact Online

Franklin Templeton MF launches Templeton Fixed Horizon Fund