Asian stocks dropped for the seventh week in eight, sending the region’s benchmark index to the lowest level since 2004, on signs profits are declining as the credit crisis worsens.
Sony Corp, maker of the PlayStation game consoles, slumped 19 percent to the lowest in 13 years after slashing its profit forecast on weaker demand for electronics and the surging yen. Samsung Electronics Co led South Korea’s KOSPI Index to its biggest weekly drop in at least two decades after its profit tumbled and as the government stepped up measures to shore up the nation’s financial system. Newcrest Mining Ltd, Australia’s largest gold producer, led a drop by commodities producers as oil, gold and copper all recorded new lows for the year.
The MSCI Asia-Pacific Index lost 7.9 percent to 80.40 this week, bringing the index to its lowest close since May 2004. Measures of commodity and electronics companies posted the steepest declines among the index’s 10 industry groups as only utilities recorded gains.
The MSCI gauge has lost 49 percent this year and is on track for its worst annual performance since it was created in 1987. About half the value of global equities has been erased in the last year, with almost US$30 trillion in value lost.
TAIPEI
Taiwanese share prices are expected to encounter additional volatility over the next week as foreign institutional investors remain at the sell side amid the global financial woes, dealers said.
Many investors remain cautious ahead of a US Federal Reserve policy meeting on Tuesday and Wednesday, waiting for possible rate cuts and comments on the world economy, they said.
The market is expected to move lower to test the 4,200-point support level next week, while a likely technical rebound may lift the index to around 4,600 points, dealers said.
For the week to Friday, the TAIEX closed down 380.78 points, or 7.68 percent, at 4,579.62 after a 3.32 percent fall a week earlier.
Average daily turnover stood at NT$41.38 billion (US$1.25 billion), compared with NT$49.94 billion a week ago. The weighted index fell 150.89 points, or 3.19 percent, from Thursday.
TOKYO
Japan’s Nikkei stock index plunged 9.6 percent.
The Nikkei-225 index lost 811.9 points to end at 7,649.08, near a 20-year low of 7,607.88 struck on April 28, 2003. The broader TOPIX index of all-first section shares fell 65.59 points, or 7.52 percent, to 806.11.
HONG KONG
Hong Kong share prices closed 8.3 percent down.
The Hang Seng Index plunged 1,142.11 points to 12,618.38, its lowest close since it ended at 12,431 points on Aug. 24, 2004.
SYDNEY
Australian share prices fell 2.6 percent. Some A$30 billion (19.9 billion US) was wiped off the market’s value as property, miners and financial institutions tumbled to end the week lower.
The benchmark S&P/ASX200 index fell 105.0 points to close at 3,869.4 while the broader All Ordinaries slipped 107.7 points, or 2.7 percent, to 3,831.6, its weakest close since Nov. 2, 2004.
SHANGHAI
Chinese share prices closed down 1.92 percent. The benchmark Shanghai Composite Index, which covers A and B shares, was down 35.94 points at 1,839.62. The Shanghai A-share index fell 1.91 percent to 1,932.37, while the Shenzhen A-share index lost 8.99 points, or 1.66 percent, to 531.72.
SEOUL
South Korean shares closed 10.6 percent lower.
The KOSPI index ended down 110.96 points at 938.75, the lowest figure since May 2005.
SINGAPORE
Shares plunged 8.33 percent.
The main Straits Times Index fell 145.39 points to 1,600.28.
It was the index’s lowest closing level since September 2003.
KUALA LUMPUR
Malaysian stocks slumped 3.6 percent. The Kuala Lumpur Composite Index shed 32.21 points to 859.11.
JAKARTA
Indonesian shares closed 6.9 percent lower. The Indonesian Stock Exchange’s main index dropped 92.34 points to a 28-month low of 1,244.86 points in thin volume.
BANGKOK
Thai share prices closed 6.96 percent lower.
The Stock Exchange of Thailand composite index lost 32.37 points to close at 432.87 points.
MANILA
Philippine share prices closed 2.1 percent down at a three-year low.
The composite index gave up 42.43 points to 1,953.49, its lowest level since Oct. 27, 2005.
WELLINGTON
New Zealand share prices closed 1.03 percent lower. The NZX-50 index fell 28.79 points to close at 2,778.55.
MUMBAI
Indian shares fell almost 11 percent. The benchmark 30-share SENSEX tumbled by 1,070.63 points or 10.96 percent to close at 8,701.07, its lowest level since Nov. 23, 2005.
DISCONTENT: The CCP finds positive content about the lives of the Chinese living in Taiwan threatening, as such video could upset people in China, an expert said Chinese spouses of Taiwanese who make videos about their lives in Taiwan have been facing online threats from people in China, a source said yesterday. Some young Chinese spouses of Taiwanese make videos about their lives in Taiwan, often speaking favorably about their living conditions in the nation compared with those in China, the source said. However, the videos have caught the attention of Chinese officials, causing the spouses to come under attack by Beijing’s cyberarmy, they said. “People have been messing with the YouTube channels of these Chinese spouses and have been harassing their family members back in China,”
The Central Weather Administration (CWA) yesterday said there are four weather systems in the western Pacific, with one likely to strengthen into a tropical storm and pose a threat to Taiwan. The nascent tropical storm would be named Usagi and would be the fourth storm in the western Pacific at the moment, along with Typhoon Yinxing and tropical storms Toraji and Manyi, the CWA said. It would be the first time that four tropical cyclones exist simultaneously in November, it added. Records from the meteorology agency showed that three tropical cyclones existed concurrently in January in 1968, 1991 and 1992.
GEOPOLITICAL CONCERNS: Foreign companies such as Nissan, Volkswagen and Konica Minolta have pulled back their operations in China this year Foreign companies pulled more money from China last quarter, a sign that some investors are still pessimistic even as Beijing rolls out stimulus measures aimed at stabilizing growth. China’s direct investment liabilities in its balance of payments dropped US$8.1 billion in the third quarter, data released by the Chinese State Administration of Foreign Exchange showed on Friday. The gauge, which measures foreign direct investment (FDI) in China, was down almost US$13 billion for the first nine months of the year. Foreign investment into China has slumped in the past three years after hitting a record in 2021, a casualty of geopolitical tensions,
‘SOMETHING SPECIAL’: Donald Trump vowed to reward his supporters, while President William Lai said he was confident the Taiwan-US partnership would continue Donald Trump was elected the 47th president of the US early yesterday morning, an extraordinary comeback for a former president who was convicted of felony charges and survived two assassination attempts. With a win in Wisconsin, Trump cleared the 270 electoral votes needed to clinch the presidency. As of press time last night, The Associated Press had Trump on 277 electoral college votes to 224 for US Vice President Kamala Harris, the Democratic Party’s nominee, with Alaska, Arizona, Maine, Michigan and Nevada yet to finalize results. He had 71,289,216 votes nationwide, or 51 percent, while Harris had 66,360,324 (47.5 percent). “We’ve been through so
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