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ASIA: Asian stocks plunge as global credit crisis deepens

A maiko, or an apprentice geisha, walks past an electronic stock board in downtown Tokyo on Friday. The Nikkei stock index dropped 9.62 percent to close the day at 8,276.43. PHOTO: AP

Asian stocks plummeted last week, sending the region’s benchmark index to its biggest weekly drop on record, as the deepening credit crisis threatened to push more companies into bankruptcy.

Mitsubishi UFJ Financial Group Inc slumped 20 percent as Asian money-market rates climbed even as the US Federal Reserve and other central banks cut borrowing costs to revive credit lending. BHP Billiton Ltd, the world’s biggest mining company, sank 8.8 percent, while Toyota Motor Corp plunged 21 percent on concern a worldwide slowdown will hurt demand for metals and automobiles.

“It’s pure panic,” said Ivan Tham, Singapore-based head of funds management at the state-backed Kuwait Finance House, which has about US$24 billion in assets.

“You’re seeing companies start to fail because they can’t refinance. Good companies are being sold down aggressively with the bad,” Tham said.

The MSCI Asia-Pacific Index fell 18.7, or 17.8 percent, to 86.0, the biggest weekly decline since the index was created on Dec. 31, 1987.

Regional glance • TAIEX: Down 1.45 percent to 5,130.71 (Thursday). • Nikkei: Down 9.62 percent to 8,276.43. • TOPIX: Down 7.1 percent to 840.86. • Hang Seng: Down 7.2 percent to 14,796.87. • S&P/ASX200: Down 8.3 percent to 3,960.7. • Shanghai Composite: Down 3.57 percent to 2,000.57. • KOSPI: Down 4.1 percent to 1,241.47. • Straits Times Index: Down 7.34 percent to 1,948.33. • SENSEX: Down 7.07 percent to 10,527.85.

Japan’s Nikkei 225 Stock Average plunged 24 percent for the biggest weekly decline in its more than 50-year history. Australia’s S&P/ASX 200 Index slumped 16 percent, the biggest rout since 1992. Hong Kong’s Hang Seng Index fell 16 percent, the most since January 1998.

TAIPEI

Markets in Taiwan were closed on Friday for the Double Ten public holiday.

Taiwanese share prices are expected to encounter further downside risks as worries over global economic fundamentals continue to haunt the market, dealers said on Thursday.

With listed companies due to release their the third quarter earnings reports later this month, many investors are reluctant to jump into the trading floor until such uncertainty is removed, they added.

It is possible for the market to test the key 5,000-point level and even fall to the 4,600-4,700 point support next week, while resistance at around 5,200 points may cap any technical rebound, dealers said.

In the week to Thursday, the weighted index was down 611.52 points or 10.65 percent at 5,130.71 after a 3.16 percent fall a week earlier.

TOKYO

Japan’s Nikkei stock index plunged 9.62 percent, dealers said.

The Nikkei dived 881.06 points to end at 8,276.43, the lowest level since May 2003, while the TOPIX index of all first section shares sank 64.25 points, or 7.1 percent, to 840.86.

SYDNEY

Australian shares closed down 8.3 percent, dealers said.

The benchmark S&P/ASX200 plunged 360.2 points to 3,960.7, breaking through the 4,000 barrier to its lowest close in more than five years, while the broader All Ordinaries fell 351.9 points to 3,939.4.

HONG KONG

Shares closed down 7.2 percent, dealers said. The benchmark Hang Seng Index closed down 1,146.37 points at 14,796.87, its lowest closing figure since November 2005.

All 42 companies that make up the Hang Seng Index ended the day lower. Dealers were divided about whether the market has hit the bottom.

SHANGHAI

Chinese share prices closed 3.57 percent lower, dealers said.

The Shanghai Composite Index, which covers A and B shares, was down 74.01 points at 2,000.57. The key index fell 12.8 ­percent this week, the biggest weekly percentage loss since June 13. The Shanghai A-share index shed 3.56 percent to 2,101.30 points, while the Shenzhen A-share index was down 5.55 percent at 558.34.

SEOUL

South Korean shares closed 4.1 percent lower, recovering some ground after a morning decline of almost eight percent, dealers said.

The KOSPI index ended down 53.42 points at 1,241.47.

SINGAPORE

Singapore shares closed 7.34 percent lower, dealers said. The blue-chip Straits Times Index ended down 154.38 points at 1,948.33 — its lowest close since September 2004.

KUALA LUMPUR

Malaysian share prices closed 3.6 percent lower, dealers said. The Kuala Lumpur Composite Index lost 34.88 points to 934.01, off a low of 931.79.

BANGKOK

Thai share prices closed 9.61 percent lower, dealers said. The Stock Exchange of Thailand (SET) composite index fell 48.03 points to close at 451.96 points.

MANILA

Philippine share prices closed 8.3 percent lower, dealers said. The composite index lost 190.64 points to 2,097.80 points.

WELLINGTON

New Zealand shares dived 4.72 ­percent, dealers said. The NZX-50 index fell 139.08 points to 2,805.31.

MUMBAI

Indian shares closed down 7.07 percent, dealers said. The 30-share SENSEX index fell 800.51 points to 10,527.85.
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