Asian stocks close sharply down in heavy sell-off

Asian stocks close sharply down in heavy sell-off TOKYO
Thu, Nov 08, 2007

- ASIAN stocks tumbled on Thursday after big falls on Wall Street due to growing concerns that the US economy could slow amid a credit crunch, a sliding greenback and high oil prices.

TOKYO - ASIAN stocks tumbled on Thursday after big falls on Wall Street due to growing concerns that the US economy could slow amid a credit crunch, a sliding greenback and high oil prices.

The Shanghai market was one of the worst hit, sliding 4.85 per cent as trading screens across Asia turned red. The rout pushed down share prices in nearby Taiwan and Hong Kong by 3.90 and 3.20 per cent respectively.

The US remains a key destination for Asian exports but is struggling to deal with a subprime mortgage crisis, where defaults on loans extended to riskier homebuyers have hit its housing market and threaten an economic slowdown.

Share prices in Japan, Asia's biggest economy, closed down 2.0 percent at a two-month low.
TOKYOJapanese shares prices closed down 2.0 per cent on Thursday at a two-month low after sharp falls on Wall Street caused by worries about high oil prices, a weak dollar and heavy losses at General Motors, dealers said.

The benchmark Nikkei index slipped below the key 16,000 points level, with a stronger yen and weaker-than-expected domestic machinery orders piling on additional pressure.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 325.11 points to 15,771.57, the lowest closing level since Sept 10.

The broader Topix index of all first-section shares declined 39.75 points or 2.55 per cent to 1,516.94.

SHANGHAIChinese share prices tumbled 4.85 per cent on Thursday as investor confidence was rattled badly by the heavy sell-offs on the Hong Kong and United States equity markets, dealers said.

They said sentiment was fragile after Hong Kong slumped 3.2 per cent, dragged down by Wall Street?s 2.7 per cent loss overnight on fears over a credit crunch, a weak US dollar, high crude prices and massive losses by General Motors.

The Shanghai Composite Index, covering A and B shares, fell 271.76 points to 5,330.02 on turnover of 83.76 billion yuan (S$16.3 billion).

It was the index's biggest one-day percentage loss since July 5.

HONG KONGHong Kong share prices closed down 3.20 per cent on Thursday after a big drop on Wall Street overnight and amid concerns about credit market woes, high oil prices and a weaker dollar, dealers said.

They said selling pressure wilted most blue-chip stocks listed in the southern Chinese territory on a day when trading screens turned red across Asia.

The Hang Seng Index closed down 948.71 points at 28,760.22, off a low of 28,545.70 and a high of 29,009.37. Turnover was HK$148.86 billion (S$27.6 billion).

SINGAPORE and MALAYSIA's stock markets are closed on Thursday for a public holiday. Trading will resume on Friday. -- REUTERS, AFP