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 (
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.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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