,
Asian stocks fell for the first week in three on mounting signs the deepening global recession is hurting corporate profits.
PetroChina Co (中石油), the nation’s largest oil producer, lost 9.3 percent as crude prices plunged amid mounting signs of weakness in global economies. Toyota Motor Corp’s forecast for its first-ever operating loss dragged South Korean rivals Hyundai Motor Co and Kia Motors Corp more than 16 percent lower on concern automobile demand is plummeting.
“The global economic situation is continuing to deteriorate,” said Karma Wilson, Sydney-based head of Asian equities at AMP Capital Investors, which manages about US$61 billion.
The MSCI Asia Pacific Index fell 2.4 percent to 87.40 this week. Gauges of energy stocks and raw-material producers posted the biggest declines among the benchmark index’s 10 industry groups last week.
The MSCI Asia Pacific has slumped 45 percent this year, the worst annual performance in its two-decade history, as the most severe financial crisis since the Great Depression dragged economies worldwide into recessions. Losses and writedowns tied to the collapse the US subprime-mortgage market rose above US$1 trillion last week.
Analysts have cut their average earnings-per-share estimate for companies on the index by 29 percent since the beginning of the year, data compiled by Bloomberg shows.
Japanese government reports in the week showed that factory output tumbled last month, while unemployment rose and exports plunged the most on record.
TAIPEI
Taiwan shares are expected to trade in a strict range this week ahead of the upcoming four-day New Year holiday, dealers said on Friday.
With many foreign institutional investors away for their holidays, daily turnover was expected to remain low, keeping the market quiet, they said.
Mid and small cap stocks may have a better chance to turn active, while electronic and financial heavyweights are likely to remain mired in low liquidity, they added.
The market is expected to face strong technical resistance at about 4,500 points this week, while there may be a floor at around 4,300 points, dealers said.
For the week to Friday, the weighted index fell 269.44 points or 5.74 percent to 4,425.08 after a 4.76 percent increase a week earlier.
Average daily turnover stood at NT$44.08 billion (US1.34 billion), compared with US$71.38 billion dollars a week ago.
Taiwan International Securities (金鼎證券) analyst Arch Shih (施博元) said consolidation was a good way for the market to digest remaining selling pressure after recent heavy losses.
“The pre-holiday sessions with many investors sidelined could not come at a better time to facilitate narrow fluctuations and make the market technically healthier,” Shih said.
Shih said small and medium-sized shipping, cement and chemical stocks may attract more market attention after they were recently hit hard.
Other regional markets:
KUALA LUMPUR: Malaysian shares closed 0.3 percent lower.
The Kuala Lumpur Composite Index lost 2.27 points to close at 867.35 with a thin volume of 178 million shares worth 156.34 million ringgit.
JAKARTA: Indonesian shares ended 0.3 percent higher.
The Jakarta Composite Index rose 4.28 points to 1,340.89.
Bank Mandiri closed 1.3 percent higher at 2,025 rupiah while Bank Negara ended three percent up at 680.
Cellular provider Indosat rose 3.7 percent to 5,600 rupiah.
MUMBAI: Indian shares fell 2.51 percent.
The benchmark 30-share Sensex index fell 239.8 points to 9,328.92 as investors unwound positions on concerns of weak corporate quarterly earnings in January, dealers said.
UPDATED (3:40pm): A suspected gas explosion at a shopping mall in Taichung this morning has killed four people and injured 20 others, as emergency responders continue to investigate. The explosion occurred on the 12th floor of the Shin Kong Mitsukoshi in Situn District (西屯) at 11:33am. One person was declared dead at the scene, while three people were declared deceased later after receiving emergency treatment. Another 20 people sustained major or minor injuries. The Taichung Fire Bureau said it received a report of the explosion at 11:33am and sent rescuers to respond. The cause of the explosion is still under investigation, it said. The National Fire
ACCOUNTABILITY: The incident, which occured at a Shin Kong Mitsukoshi Department Store in Taichung, was allegedly caused by a gas explosion on the 12th floor Shin Kong Group (新光集團) president Richard Wu (吳昕陽) yesterday said the company would take responsibility for an apparent gas explosion that resulted in four deaths and 26 injuries at Shin Kong Mitsukoshi Zhonggang Store in Taichung yesterday. The Taichung Fire Bureau at 11:33am yesterday received a report saying that people were injured after an explosion at the department store on Section 3 of Taiwan Boulevard in Taichung’s Situn District (西屯). It sent 56 ambulances and 136 paramedics to the site, with the people injured sent to Cheng Ching Hospital’s Chung Kang Branch, Wuri Lin Shin Hospital, Taichung Veterans General Hospital or Chung
‘TAIWAN-FRIENDLY’: The last time the Web site fact sheet removed the lines on the US not supporting Taiwanese independence was during the Biden administration in 2022 The US Department of State has removed a statement on its Web site that it does not support Taiwanese independence, among changes that the Taiwanese government praised yesterday as supporting Taiwan. The Taiwan-US relations fact sheet, produced by the department’s Bureau of East Asian and Pacific Affairs, previously stated that the US opposes “any unilateral changes to the status quo from either side; we do not support Taiwan independence; and we expect cross-strait differences to be resolved by peaceful means.” In the updated version published on Thursday, the line stating that the US does not support Taiwanese independence had been removed. The updated
‘LAWFUL USE’: The last time a US warship transited the Taiwan Strait was on Oct. 20 last year, and this week’s transit is the first of US President Donald Trump’s second term Two US military vessels transited the Taiwan Strait from Sunday through early yesterday, the Ministry of National Defense said in a statement, the first such mission since US President Donald Trump took office last month. The two vessels sailed south through the Strait, the ministry said, adding that it closely monitored nearby airspace and waters at the time and observed nothing unusual. The ministry did not name the two vessels, but the US Navy identified them as the Arleigh Burke-class guided-missile destroyer USS Ralph Johnson and the Pathfinder-class survey ship USNS Bowditch. The ships carried out a north-to-south transit from
RSS