Asian stocks posted the biggest weekly drop in 13 months on concern a US$700 billion US bank bailout will fail to stimulate demand for the region’s exports.
Toyota Motor Corp fell 14 percent this week, the most in 21 years, after its US car sales plunged 32 percent last month. BHP Billiton, the world’s biggest miner, dropped 15 percent as commodity prices headed for their biggest weekly decline in 50 years. Babcock & Brown Ltd paced a drop in financial stocks, sliding 20 percent, as borrowing costs increased.
“Investors are worried that economic conditions and earnings will still deteriorate even with this rescue plan,” said Masaru Hamasaki, a senior strategist at Toyota Asset Management Co in Tokyo, which manages US$3.3 billion. “The weakening global demand is becoming more of a concern to many investors.”
The MSCI Asia-Pacific Index dropped 8 percent this week, the most since the five days ended Aug. 17 last year, when credit markets first seized up as the US subprime mortgage crisis prompted banks to rein in lending. The index has slumped 33 percent this year as the credit crunch brought down banks including Lehman Brothers Holdings Inc.
The index tumbled 3.9 percent on Monday after the US House of Representatives blocked the first passage of the rescue plan.
A measure of commodity producers tumbled 14.9 percent, the most since at least 1995, when Bloomberg data on the index was first compiled. All 10 industry groups declined.
Toyota, the world’s No. 2 carmaker, fell 14 percent this week to ¥4,080 (US$38.78), its biggest loss since October 1987. The company said it offered no-interest loans on 11 models in the US, where its sales tanked the most in 21 years.
Markets were closed on Friday in South Korea, China and Indonesia for public holidays.
TAIPEI
Taiwanese share prices are expected to encounter resistance next week amid concerns over the global financial system ahead of the US bailout package vote, dealers said on Friday.
Even if the rescue plan is passed in Congress, investors are still keeping their fingers crossed as they assess the outcome after the package is implemented, they said.
Dealers also remained worried about the domestic economy as the tainted Chinese milk product scandal has further undermined the already weak local consumption, they added.
The market is expected to test 5,500 points again next week on economic concerns at home and abroad, while any technical rebound may be capped with the index moving closer to the key 6,000-point level, dealers said.
In the week to Friday, the TAIEX closed down 187.40 points, or 3.16 percent, at 5,742.23 after a 0.68 percent fall a week earlier.
Average turnover stood at NT$66.51 billion (US$2.07 billion), compared with NT$88.72 billion a week ago.
The weighted index on Friday rose 38.51 points, or 0.68 percent, to 5,742.23 from Thursday, off a low of 5,558.35 and a high of 5,747.73, on turnover of NT$67.12 billion. Gainers led losers by 998 to 617, with 382 stocks unchanged.
“The reduced trading volume showed weak market confidence as global financial woes continue to haunt investors here,” President Securities (統一證券) analyst Steven Huang said.
“Few can be sure whether the US rescue plan will effectively stem the difficulties in the banking system even if it gets approved. We are at a critical moment,” Huang said.
TOKYO
Japanese shares tumbled 1.94 percent, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 216.62 points to 10,938.14, below the key 11,000 points level for the first time since May 2005. The index plunged 8 percent over the week.
The broader TOPIX index of all first section shares lost 29 points, or 2.69 percent, on Friday to end at 1,047.97.
HONG KONG
Share prices dropped 2.9 percent, dealers said. The benchmark Hang Seng Index dropped 528.71 points to 17,682.40.
SYDNEY
Australian shares dropped 1.4 percent, dealers said. The benchmark S&P/ASX 200 closed down 65.7 points at 4,695.4, while the broader All Ordinaries shed 71.3 points to end the week at 4,702.8.
MANILA
Philippine share prices closed 1.78 percent lower, dealers said.
The composite index fell 46.68 points to 2,566.21.
SINGAPORE
Shares closed 2.81 percent lower, dealers said. The blue-chip Straits Times Index fell 66.48 points to 2,297.12.
There were 137 risers against 302 decliners, with 866 stocks unchanged.
KUALA LUMPUR
Malaysian share prices closed 0.2 percent lower, dealers said.
The Kuala Lumpur Composite Index dropped 1.98 points to close at 1,016.70.
BANGKOK
Thai share prices closed 1.28 percent lower, dealers said.
The Stock Exchange of Thailand (SET) composite index lost 7.64 points to close at 590.05 points.
WELLINGTON
New Zealand share prices fell 2.51 percent, dealers said.
The benchmark NZX-50 index fell 81.10 points to close at 3,151.54.
MUMBAI
Indian shares slumped 4.05 percent. The BSE benchmark 30-share SENSEX index fell 529.35 points or 4.05 percent to 12,526.32, its lowest level since April last year.
AIR SUPPORT: The Ministry of National Defense thanked the US for the delivery, adding that it was an indicator of the White House’s commitment to the Taiwan Relations Act Deputy Minister of National Defense Po Horng-huei (柏鴻輝) and Representative to the US Alexander Yui on Friday attended a delivery ceremony for the first of Taiwan’s long-awaited 66 F-16C/D Block 70 jets at a Lockheed Martin Corp factory in Greenville, South Carolina. “We are so proud to be the global home of the F-16 and to support Taiwan’s air defense capabilities,” US Representative William Timmons wrote on X, alongside a photograph of Taiwanese and US officials at the event. The F-16C/D Block 70 jets Taiwan ordered have the same capabilities as aircraft that had been upgraded to F-16Vs. The batch of Lockheed Martin
GRIDLOCK: The National Fire Agency’s Special Search and Rescue team is on standby to travel to the countries to help out with the rescue effort A powerful earthquake rocked Myanmar and neighboring Thailand yesterday, killing at least three people in Bangkok and burying dozens when a high-rise building under construction collapsed. Footage shared on social media from Myanmar’s second-largest city showed widespread destruction, raising fears that many were trapped under the rubble or killed. The magnitude 7.7 earthquake, with an epicenter near Mandalay in Myanmar, struck at midday and was followed by a strong magnitude 6.4 aftershock. The extent of death, injury and destruction — especially in Myanmar, which is embroiled in a civil war and where information is tightly controlled at the best of times —
China's military today said it began joint army, navy and rocket force exercises around Taiwan to "serve as a stern warning and powerful deterrent against Taiwanese independence," calling President William Lai (賴清德) a "parasite." The exercises come after Lai called Beijing a "foreign hostile force" last month. More than 10 Chinese military ships approached close to Taiwan's 24 nautical mile (44.4km) contiguous zone this morning and Taiwan sent its own warships to respond, two senior Taiwanese officials said. Taiwan has not yet detected any live fire by the Chinese military so far, one of the officials said. The drills took place after US Secretary
THUGGISH BEHAVIOR: Encouraging people to report independence supporters is another intimidation tactic that threatens cross-strait peace, the state department said China setting up an online system for reporting “Taiwanese independence” advocates is an “irresponsible and reprehensible” act, a US government spokesperson said on Friday. “China’s call for private individuals to report on alleged ‘persecution or suppression’ by supposed ‘Taiwan independence henchmen and accomplices’ is irresponsible and reprehensible,” an unnamed US Department of State spokesperson told the Central News Agency in an e-mail. The move is part of Beijing’s “intimidation campaign” against Taiwan and its supporters, and is “threatening free speech around the world, destabilizing the Indo-Pacific region, and deliberately eroding the cross-strait status quo,” the spokesperson said. The Chinese Communist Party’s “threats
RSS