World stocks tumbled yesterday, with Tokyo’s market plunging more than 11 percent, after another dive on Wall Street as worse-than-expected data about the US economy heightened fears of a global recession.
Japanese Prime Minister Taro Aso blamed the renewed drop in markets, which had rebounded earlier this week, on investor concerns that the US government’s US$700 billion bank bailout was insufficient.
“Since it was insufficient, the market is again falling sharply,” Aso told lawmakers.
He did not elaborate.
Tokyo’s Nikkei 225 stock average slid 1,089.02 points, or 11.41 percent, to 8,458.45, its biggest drop since the 1987 stock market crash.
In South Korea, the main index dropped 9.25 percent after Standard & Poor’s said it may downgrade the credit ratings of some of the country’s leading banks. The ratings agency warned the credit crisis could make it difficult for the companies to refinance maturing debt.
Hong Kong’s key index trimmed losses, closing down 4.8 percent after falling more than 8 percent earlier, while Taiwan’s TAIEX finished 3.25 percent lower.
Benchmarks in Britain, Germany and France opened about 3 percent lower. Russia’s RTS also fell back.
Investors were unnerved by US data showing the country’s retail sales fell 1.2 percent last month almost double the 0.7 percent decline analysts expected — clear evidence that consumer spending, which accounts for more than two-thirds of US economic activity, was weakening.
That was followed by more bearish data from the US Federal Reserve that showed the economy continued to slow in the early fall as financial and credit market problems took a turn for the worse.
All told, the readings provided some of the most ominous signs to date that the world’s largest economy — a critical export market for Asia — was sliding into recession, if not already in one.
In New York on Wednesday, the Dow Jones Industrial Average ended down 733.08, or 7.87 percent, at 8,577.91 — its second-biggest point loss ever.
Facing an economic downturn and the worst financial crisis since the Great Depression, EU leaders pushed yesterday for increased oversight in their own backyard after the recent turmoil on the money markets.
In a draft statement that was likely to be endorsed at the end of the two-day summit, the 27 EU leaders reiterated plans to set up a financial crisis cell that would act as an early warning system and revived a long-talked about plan to beef up Europe-wide supervision of cross-border finance groups.
All 27 EU leaders on Wednesday threw their support behind measures taken by members of the eurozone to safeguard banks, which include plans for governments to guarantee over 1 trillion euros (US$1.35 trillion) in interbank loans.
EU leaders also pushed for a sweeping revamp of the international financial architecture.
Also See: Poland, Italy threaten to veto climate change plan、World Bank pledges to stand by Asia
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source