,
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.
SEASONAL MORATORIUM: The boat was boarded and seized by the China Coast Guard east-northeast of Liaoluo Bay outside restricted waters on July 2 Four crew members of a Taiwanese fishing vessel detained by Chinese authorities since July 2 are expected to be released today, but the return dates of the captain and the boat remain uncertain, a former official said. The Fujian Provincial People’s Government’s Taiwan Affairs Office (TAO) is likely to first release the crew members today, including a Taiwanese surnamed Ting (丁) and three Indonesians, former Penghu County Council deputy speaker Chen Shuang-chuan (陳雙全) said yesterday. They are to take a boat to the median line of the Taiwan Strait, where they would be picked up by the Da Jin Man No. 96
China appears to be using a new type of BZK-005 drone that might be capable of disrupting the radio communications in the Taiwanese military and causing the radar system to malfunction, a military source said yesterday. The military is closely monitoring traces of this upgraded drone after the Japanese Ministry of Defense recently captured images of a BZK-005 drone, which had a large number of antennas under the nose of the aircraft and a pod of unknown purpose attached under the belly of the craft. Defense experts in other countries had warned that the Chinese People’s Liberation Army (PLA) has bolstered
CHAMPION: Lin Yu-ting overcame adversity and intense international scrutiny on her path to Olympic victory. She said it means so much to win the gold for her country Taiwanese boxer Lin Yu-ting (林郁婷) emerged as Olympic champion in the women’s 57kg (featherweight) division on Saturday in Paris (Sunday in Taipei), despite facing online abuse due to gender misconceptions over the past two weeks. Lin defeated Julia Szeremeta of Poland by a unanimous 5-0 decision to clinch the gold, completing a long journey of redemption after being eliminated from the Tokyo Games in 2021 in her opening bout. Lin, who has been competing in women’s events since her boxing debut in September 2013, is the first Taiwanese boxer to win gold, after three other Taiwanese female boxers earned bronze medals in
MESSAGE TO THE WORLD: A letter by overseas Taiwanese organizations also called on the international community to ‘support democracy’ by opposing Chinese pressure Twenty-four overseas Taiwanese organizations in a joint letter urged the International Olympic Committee (IOC) to stop infringing on spectators’ freedom of speech and allow them to display Taiwan signage. The letter, addressed to IOC president Thomas Bach and members of the IOC executive board, was led by the Formosan Association for Public Affairs (FAPA), along with 23 other overseas Taiwanese organizations from the US, Japan, Europe, Argentina and Costa Rica. During the Olympic games, signs or items with the words “Taiwan” on them have been snatched away by Olympic security staff or Chinese spectators. Some spectators holding such signs have been forcibly