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Credit-market losses, oil weigh Asia down

Asian stocks fell for the seventh time in eight weeks this year on concern widening credit-market losses and record crude oil prices will erode profits.

Australia and New Zealand Banking Group Ltd dropped for the week after its chief executive said a "bloodbath" in debt markets will erase earnings growth. Millea Holdings Inc slumped the most in two months after a newspaper said Aioi Insurance Co will report US$747 million of subprime-related losses. Tokyo Electric Power Co declined after crude oil prices climbed to a record high.

"The subprime issue isn't over yet," said Hans Kunnen, who helps manage US$128 billion at Colonial First State Global Asset Management in Sydney. "There's no question that funding costs have gone up a touch, which doesn't help banks."

The MSCI Asia Pacific Index dropped 0.8 percent to 143.66, widening its loss for this year to 9 percent. Japan's Nikkei 225 Stock Average fell 0.9 percent this week and markets retreated around the region, except for Taiwan, Indonesia and New Zealand.

The MSCI Asia-Pacific Utilities Index dropped 3.5 percent this week, the steepest decline among the regional benchmark's 10 industry groups, after crude oil prices climbed to US$101.32 a barrel, the highest since oil futures began trading in 1983.

Meanwhile, Vietnam's benchmark stock index fell to the lowest since December 2006 as banks cut loans for equity investment. The South Asian nation is trying to slow the fastest inflation in 12 years.

The Ho Chi Minh City Stock Exchange's VN Index plunged 16 percent this week, the worst performer among the 90 benchmarks tracked by Bloomberg.

TAIPEI

Taiwanese share prices closed up 0.28 percent, dealers said. The weighted index closed up 22.78 points at 8,108.71 on turnover of NT$131.21 billion (US$4.19 billion).

"Investors opted not to sell down their holdings excessively because many were still betting on a pre-election upswing on the back of a firmer Taiwan dollar in the coming weeks," Taiwan International Securities (金鼎證券) analyst Arch Shih (施薄元) said.

TOKYO

Japanese share prices closed down 1.37 percent after weak manufacturing data made investors jittery, adding to fears of a US recession, dealers said.

The Tokyo Stock Exchange's benchmark Nikkei-225 index fell 187.82 points to end at 13,500.46. The broader TOPIX index of all first-section shares dropped 13.35 points or 1 percent to 1,321.37.

HONG KONG

Hong Kong share prices closed down 1.35 percent, dealers said.

The Hang Seng index closed down 317.96 points at 23,305.04.

For the week, the index was down 843 points or 3.5 percent.

"Sentiment remains weak because of numerous uncertainties on Wall Street and even in China," Steve Tse at Celestial Asia Securities Holdings Ltd said.

SHANGHAI

Chinese share prices closed down 3.47 percent on liquidity concerns, dealers said.

The benchmark Shanghai Composite index, which covers both A and B shares, closed down 156.89 points to 4,370.29. The Shanghai B-share index fell 1.67 percent to 313.64. The Shenzhen B-share index was down 2.33 percent at 631.61.

SEOUL

South Korean share prices closed down 1.1 percent, dealers said.

The benchmark KOSPI closed down 17.91 points.

SYDNEY

Australian share prices closed 0.4 percent lower on concerns about the banking sector, dealers said.

The benchmark S&P/ASX 200 closed down 23.5 points at 5,559.9, while the broader All Ordinaries ended 18.5 points or 0.3 percent lower at 5,644.5.

KUALA LUMPUR

Malaysian share prices closed down 1.8 percent, dealers said. The Kuala Lumpur Composite Index closed down 25.28 points to 1,369.48.

SINGAPORE

Singapore share prices closed 0.20 percent lower, dealers said.

The Straits Times index dipped 6.17 points at 3,048.64.

BANGKOK

Thai share prices closed flat, dealers said. The Stock Exchange of Thailand (SET) composite index fell 0.27 points, or 0.03 percent, to 826.86 and the blue-chip SET-50 fell 1.06 points to 597.73.

MANILA

Philippine share prices closed 3.0 percent lower, dealers said. The composite index dropped 95.82 points to 3,080.24. The broader all-share index fell 46.46 points to 1,898.05.

MUMBAI

Indian share prices fell 2.17 percent, dealers said.

The 30-share Mumbai SENSEX index fell 385.71 points to 17,349.07.

"The markets fell on weak global news. The markets will await federal budget policies later next week," a dealer with brokerage Prabhudas Lilladher said.
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